Democrats Have a Large Majority, So What's the Hold Up?
The Democratic party holds a clear majority in both the House and the Senate. They will have the vote of many, though not a majority, of republicans. The Democrats feel they have a bailout (don't bother calling it a "rescue plan" or "investing in America) plan they like ready to go. So just what is the hold up on a vote?
Enter into the fearful world of politics. Every congress member know that public opinion is running wildly high AGAINST any Wall Street bailout with taxpayer dollars at real risk. Some estimates are as high as 75% against to a low figure of 60% against. I do not believe any real sampling could return a 40% pro-bailout result unless you are only asking Goldman Sachs employees! The severe anger and resentment of this possible bill makes the politician the one thing that can influence their behavior: fearful.
The democrats can pass this bill right now. They want to do this with a mega majority vote. In this way when election time comes this November they can say "You cannot blame just us, the republicans voted for this too!" The bailout is a bad policy and it is very unpopular. Our officials know this. Nobody wants to run against an opponent in November that can say "That guy/girl gave all your money to Wall Street, so vote for me instead!"
It is both craven and sad that any congress member would vote for something so opposed by their constituents of they felt they would not suffer at the polls for it. If this bill is the best thing for America, then vote on it and let it stand. If you think the bill will cost you your seat, then do not vote for it. Decision time is upon the congress. What is it going to be?
The past few weeks have really shown the kind of overt and far reaching manipulation that goes on in our markets. Even the most ardent "there is no manipulation" types have had to throw in the towel as the FED and Treasury show their hands time and time again. From banning short selling to futures market buying the government has been trying to prop up the market in full view for all.
This fact was even more pronounced last night when on a THURSDAY the FDIC made their move to close Washington Mutual and sell off their base to JP Morgan. This kind of thing is always done on a Friday to facilitate an orderly transfer for Monday. Why was Last night so important. The bailout bill of course.
The more I think about this "staring at the abyss" stuff I cannot help but have a certain feeling. A certain thought. Call it conspiracy theory of you will, but at least listen (read) what I have to say (write).
Can the current debacle be in and of itself a creation by Wall Street to get a free do over? Faced with probably a DECADE or more of stagnant earnings and never ending write downs, it seems to me the big boys on Wall Street hatched a plan. Create a desperate credit crunch by refusing to lend money. Call upon the government for help. Transfer all of you bad debt onto the taxpayer and start the game over again with fresh capital. Along the way set up a few fall guys (LEH, WM) to really scare people and this plan just might get off the ground if you had a sympathetic Treasury Secretary (former Goldman head Paulson).
The failure of Washington Mutual was a done deal for over 2 months now. The move to make it happen last night was a direct effort to cause panic and capitulation on a bailout bill that Wall Street wants. All the talk of collapse and living in caves is meant to prey on people's basic fears.
Look, I could be wrong here and in fact I think on the whole I am. I do think there are severe issues facing the debt and credit markets. I do think this is very serious. I also feel that last year I would have laughed if I had read this conspiracy theory on a blog. Tonight, I am not laughing. Discuss in the comments section.
Tonight I am putting in one of my all time favorites:
"It's fear, dude, just fear and you don't have to be Sun freakin Tzu to know that real fighting isn't about killing or even hurting the other the other guy, it's about scaring him enough to call it a day. Break their spirit, that's what every successful army goes for, from tribal face paint to the "blitzkrieg" to ...what did we call the first round of Gulf War Two, "Shock and Awe"? Perfect name, "Shock and Awe"! But what if the enemy can't be shocked and awed? Not just won't, but biologically can't? That's what happened that day outside New York City, that's the failure that almost lost us the whole damn war. The fact that we couldn't shock and awe Zack boomeranged right back in our faces and actually allowed Zack to shock and awe us! They're not afraid! No matter what we do, no matter how many we kill, they will never, ever be afraid.
Yonkers was supposed to be the day we restored confidence to the American people, instead we practically told them to kiss their ass goodbye."
Max Brooks - World War Z: the battle of Yonkers against the zombies chapter
Rock and Roll
A little music to head into the weekend, yes?
I love this song by the band Adrenalin. It was featured in the film "Iron Eagle" and it is a highly recommended listen. Here is "Road of the Gypsy":
I dug up this classic song and video complete with insanely hot lady! take a look at Eddie Money with "Shakin":
A little speed metal to end the night hot. Try out Megadeth with "Hanger 18":
Have a good night.