Monday, September 29, 2008

InvestRationale: On the day the market collapsed - Everyone wants to JUST make their point

The meltdown today (September 22, 2008) has energized me to write 2 blogs ... and hopefully broken my lethargy in blog creation. CNBC is busy with great guests, CNN, BBC and even my local TV is talking only one thing -the market collapse. But let me cut to chase. All this news is noise and gives a chance for everyone to make a point. Conservative Republicans are sending a message to the US President, the Democrats who voted against the bill get a chance to show who the real villains were that led to this situation in the first place. Taxpayer association feeling they are being heard. Unions feeling they have scored over the "fat cats" of Wall street. So the crisis unifies all by giving them the stage to blame the ones they hate. Everyone of these vested interests get to thump their chest in-front of their supporters. Republicans want it as much as Democrats. Bur Republicans want to blame the Democrats for passing the bill just in case the money spent does not come back; the Democrats have to rant so that they show they "care" for the people. But once the points are scored, back room deals made and gyrations in the market drive home, they will come together. But eventually, the credit crisis will be dealt with; not the housing and economic woes but the current flow of money issues will get resolved. The investment markets are too important for anyone to allow it to fail and the ones protesting against the "bailout" or the "rescue" will come together and cobble a package that will be "hashed" together - a major compromise and less efficient than it would have been if it had been passed in the 1st round. Each of these elite protesters (congress members, union leaders) I am sure has tonnes of money invested in the financial markets (directly or through pension funds) to let things fail. But they need to channel the anger of the people and score points before they get back to business. There could be a few casualties while everyone postures - a few banks go down, a couple of trillion $ lost by nervous sellers and some companies let go of some people.... but then what are a "bumps" in the road if you get to "poke" your enemies in their eye and get your message out to your base. So lets sit back, sip your beverage, go buy waht you really lusted for in the market and watch the theatre unfold.

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