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Call Off The Depression!

October 3, 2008

Now that the Senate has passed the $700 billion bailout legislation, the House will be forced-shamed into doing teh same thing. Thus we have diverted a DEPRESSION, so they say. And lookie here. Swiss banking giant UBS on Thursday said it would swing into profit in the third quarter, as it seeks to regain client trust after successive quarters of losses on massive asset writedowns.

Who Wants Cheaper Auto Insurance?

Now that Paulson, Bernanke, and Cox have scared Congress into helping a handful of financial institutions, we can all take a breath. There will now no longer be a DEPRESSION. Well, duh!

Let’s see now, our unemployment rate is 6% (newest figures being released today) whereas in the Great Depression of the 30’s it was 24%. Many people date the beginning of the Depression at October 24, 1929, Black Thursday, the day the stock market crashed. This was indeed a traumatic day for those who owned stock as sales volume broke all records. And what were those records anyway?

The Dow dropped from 261.97 to 255.39 as measured by the New York Times index of 50 stocks. Most of the decline still laid in the future; the market hit bottom on July 7 of 1932 when the Times index was only 33.98, a decline of over 89% from its high of 311.90 of September 19, 1929. And how does that compare to today? NO COMPARISON! The Dow dropped 778 points on Monday and then came back with a 485 point up day the next day.

If we’re going to look at 1930 depression numbers the Dow would have to drop nearly 9,500 points. It ain’t happenin!

Putin is spittin mad that things have not gone well, Chavez says capitalism is over, and many are saying that the SKY is falling. It’s amazing what we’ll say to get our way. Bush and his various henchmen have moved us closer to socialism with this “Depression-like” scare. If there was going to be a depression do you think Warren Buffett would put uf $5 BILLION to buy into Goldman-Sachs and another $3 BILLION to buy GE stock? Come on, get real! We’re talking eight million in CASH!

Let’s face it, we’ve become SPOILED!

We want our cake and eat it too. We don’t want any sort of bad news. We want raises every year. We want the good times to never end. A recession should never happen. So, to keep the good times rolling teh Senate has passed the EMERGENCY ECONOMIC STABILIZATION ACT OF 2008. Emergency! The Senate has saved us from anotehr depression- that never was going to happen anyway. Tough times? Sure. A few down years? Absolutely. But the “sky is falling”? Hardly!

Written by Ernie · Filed Under Daily Commentary 

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