In an amazing display of stupidity, Republicans in the House of Representatives purposefully sabotaged the American economy in a vote that took place a few minutes ago.
With the stock markets crashing, there are no remaining stores of value in the U.S. economy. It is truly amazing: companies that are highly profitable can be bought for a pittance today. But by making certain that the credit markets remain frozen, by playing political chicken in order to (they think) save their sorry seats in the November elections, those Representatives (and there were Democrats who voted against the plan as well) have probably insured that business and consumer spending will now go into a rapid decline. That should make once-profitable companies unprofitable. At this point I am buying only stocks in companies that have large cash reserves.
Instead of a reasonable fix and a mild recession, the most likely scenario is now a Depression, probably on a world-wide scale, possibly worse than the Great Depression.
If you don't bailout the boat, you sink, and everyone goes down, not just those too lazy to lend a hend with the bailout.
Of course I am hoping that some other plan to avert a depression is quickly brought forward. A depression not only takes an economic toll, it brings up the possibility that people will start following mean or crazy (or mean and crazy) political systems. Like fascism or totalitarian communism. Or some system that we can't even forsee.
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