I hate politicians, and have hated them for some time now- I find them self serving, conniving, and inherently deceitful. I stopped following politics in 1995 and I must say for the last 13 years, I have saved myself a lot of grief and wasted time discussing politics- in the newspapers, I turn to sports and entertainment right away and then move to business, I completely skip politics. My life has been inherently happier that way.
Today, unfortunately politics and business met, the politicians had to vote on the 700bn package that actually rescues the common american man and frankly, saves the economy from coming to a complete halt...and once again, the politicians let me down. They voted against it!! This is when we have faced the following situation in the last fortnight-
a) We faced the biggest bank collapse in American history, WaMu
b) Wachovia, the 4th largest bank in the country was sold off for a dollar
c) Lehman went under
d) Investment Banks as we know them don't exist anymore
e) AIG being bailed out for 85bn
f) There has been severe gas shortage in the country with gas lines at pumps not seen since the oil crisis in the seventies.
And what can the politicians think of? How will voters react? How will their contituents react? I used to think Indian politics was a quagmire, it seems no better in Washington.
What is shocking is that President can't get his party to fall in line?!!
And what is their alternative- wait for another 10 banks to fail!!!
I hate politics and politicians- always have and given the events of today, I think always will!!!
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Mohit,
It's certainly been an exciting ride these past few weeks. Citi picking up WB's prize consumer network for pennies, WaMu folding with no disclosure, etc.
Indeed, between Pelosi's speech and the Republicans in the House, it will be amazing if the $700B is passed in a way that allows Paulson the flexibility to manage the crisis.
Thought the Fed could take anything as collateral for lending, and could create money "out of thin air." Anything would include poor assets, bananas (as my old economics professor used to say), Treasury bills, etc. Begs the question: why is the Federal Reserve determined not to increase the money supply by $700B and take these bad assets?
USD decline vs. non-pegged currencies has been consistent for a long period of time. Wonder what levers are being pulled to drive this behavior - that the Treasury would be orchestrating with the verbal support of the Fed, versus the opposite?
By the way, if you enjoy CNBC, you might like Bloomberg a sight better.
Best,
Bryan
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