BAILOUT [strike]STRUCK DOWN[/strike] PASSED DOW PLUMMETING!

I'm just tired of this political game politicians love to play. Why don't they just stop thinking selfishly about themselves ("I'll vote for it" then turn around in the last few hours and NOT do what they just said they were about to do), and think about the people they are supposed to represent? Or the economy that is in desperate need of cash to just fund working capital (or just function on a daily basis)? Do they know how many companies can have completely good financials but not enough liquidity to survive the next few days that they go bust? "Oh, but their PPE, inventory, receivables, etc. are fine", yeah, but in the end, it's the liquidity value - not market value or book value - that counts. As if the recent events of last week weren't enough to send red flares into the air. "Cash is king" should be the motto of this year.

The media or probably rumors or just sheer ignorance of the public (that CEOs will be raking in most of the bailout money, we're bailing out the mistakes of greedy people, $700Bn is a lot of money - please, take a look at the balance sheets of Wal Mart or ExxonMobil for a sense of big, the people will be paying for it, etc etc) is maddening. When it comes time for their 401k's to go downhill, then they'll probably change their minds because it finally hits their wallets.

The banking crisis has spiraled into something that needs help, and no one is trying to keep their pride by saying that it doesn't. Bankers have admitted their defeat, even the prestigious Goldman and MS has bowed to their mistakes. Forcing surviving banks to acquire the bad debts of other banks is just a temporary solution but it still doesn't address the real issue on hand. C and JPM are not out of the clear either. In fact, they have more issues to deal with after the gov't has forced them to save their peers.

The gov't, while it still has some power, should at least instill some confidence in the public to keep believing in our economy. And then help funnel some temporary cash into the system so this doesn't become bigger than what it already is. Banks are already afraid to finance any more projects for existing companies and are already cutting down debt lines, bridge loans, revolving credit facilities, and commercial paper. Equity is expensive to finance. Long term debt is also expensive. Lack of liquidity could result in a issuer ratings downgrade, which in turn creates financing difficulty. It's an ugly spiral that we do not want to happen because it hits more people and companies than most realize.

Okay, end rant. It's just stupid how people don't think of the long term consequences.

Jam it back in, in the dark.

The index is not the issue; just a reflection of public expectation. Stocks are volatile. Gold star for everyone who has come to that conclusion now.

The underlying problem will still remain for a while, and people who thought it was gone half a year ago were evidently wrong (including myself). The problem, which is, credit and liquidity.

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