PORK! – LIKE IT OR NOT! – October 03, 2008
Congress and the President have again defied the will of the people. The Dow was up until it was announced that Congress approved the mega-sow bailout bill, at which time it began erasing the big gains it had made earlier in the day. It began a free-fall finally closing at 10,325, some 157 points lower than yesterday’s close and much lower than today’s high.
There should be an incredible spike on the signing of this porker, if this is the solution to our economic crisis. Since Sept. 19, the market has come down from 11,388 points to 10,482. That’s 906 points in the negative! If the SOW bill is the solution, the market should shoot straight up 500 or more points today and another 500 or more tomorrow.
The news media continues to incorrectly tell you that it fell 778 points Monday, Sept. 29, after the House failed to pass the bailout bill the first time. In fact, the day the House voted the first time, everyone believed the bill would pass. The Dow opened at 11,010 and fell 205 points by 10:20 a.m. before the vote was finished, expecting it to pass. Everyone was surprised when the bill failed and the Dow continued its free-fall already in progress. It bounced around until the vote tally and then fell 529 points after the rejection by House Republican conservatives and 95 Democrats who heard the people, recognized bad business practices and feared the scope of power being handed to government.
Was the free-fall already in progress caused by the rejection of the bill or was it caused by the President of the United States making a rare television speech describing dire straits for America’s economy and financial future? http://ap.google.com/article/ALeqM5iBAo1yCOOLr02NJfYtgrYmyZQKxAD93DF2T02 transcription of President Bush’s first televised speech on the economic crisis
The Dow Jones’ downward slide actually started May 8, 2008, which you can see on the chart at http://finance.yahoo.com/q/bc?s=%5EDJI&t=6m&l=on&z=m&q=l&c=
It fell from 13,000 to 11,000 by the middle of July – down 2,000 points in two and a half months. What did the news media, Hank Paulson, Pres. Bush, the Senate or the Congress tell us about that? Did any of them make a televised speech describing financial peril then? Why not? Why didn’t they call for an emergency bill at that time?
From the middle of July, the market rallied somewhat and hovered around 11,500 (roughly) until the middle of September when it resumed its downward plunge. The extreme volatility in one day swings seemed to follow the televised statements by the president and members of Congress and news media reporting..
What financial conditions were signifcant on May 8, 2008? Oil prices were sky high. Gasoline prices were sky high and rising. Rep. Dennis Kucinich proposed HR 6000 IH to the 110th Congress to impose a windfall profit tax on oil and natural gas, and products thereof, which, if passed, would have driven the price of oil and gas up even more. Companies pass their tax costs on to their consumers in the price of their products. They are in business to make money for their shareholders and not a charity.
The Wall Street Journal reported on May 9 that the “Bubble Isn’t a Big Factor in Inflation: Economists Blame Food, Fuel Run-ups on Fundamentals,” stating that 51% of their respondents said demand from China and India was the prime factor in soaring energy prices and 41% cited that demand was the chief contributor to rising food costs.
If you Google the term “May 8, 2008” + “news”, you find the internet results dominated by high oil prices, fear of the results of high and rising oil prices, high gasoline prices at the pump, etc, etc. etc. Energy prices were the big concerns on May 8 and that day the stock market began its steady decline, taking its sharpest plunge in response to Bush’s television speech that threw another big scare into the market.
Our economy has been tanked by high oil and gas prices. Do you see a bad economy in Saudi Arabia – oil capital of the world? No. They are rolling in dough. Ours and the rest of the world’s.
Bush repealed the ban on drilling, resulting in decreasing oil prices, but the Democrat-controlled Congress would not allow a vote on repealing all the drilling bans, allowing drilling in Alaska and other places known to have vast oil deposits. Had they done so, it would most likely have passed and oil prices would have fallen more significantly, relieving consumers more immediately. This would have benefited the general economy.
Very recently, the Democrats, wanting to increase chances of their re-election, allowed the drilling ban legislation to expire without challenging it, as they surely would have if the public hadn’t made their voices heard. The price of oil fell to about $93/barrel today. It was recently as high as $150.
The falling dollar was another big concern and some economists linked it to high oil prices. If your dollar is de-valued, it buys less oil, exacerbating the high oil price dilemma. Both conditions produced higher inflation of food, goods and services. Many invested in rising oil to hedge against the falling dollar.
It seems obvious that the signs of a meltdown were there, but the Democrats, who held then and hold now the majority in both houses, felt it was more important to “save the planet” as Nancy Pelosi declared on TV and fight the mythical global warming at the hands of greedy, planet-destroying addicted-to-oil citizens who don’t care (I disagree totally).
According to an article in Reuters, http://www.reuters.com/article/pressRelease/idUS102734+04-Aug-2008+PRN20080804,
Congress introduced its 10,000th bill before leaving for it’s August summer vacation. According to the article, “not a single one of the twelve annual bills that direct the
government’s spending priorities in 2009 has passed the Senate and only one
has passed the House. Congress is neglecting its basic responsibility to
manage the federal government, and is instead churning out new legislation
about everything under the sun…each year, Congress has failed to timely complete the annual
appropriations process, which divides taxpayer dollars among different federal
agencies and programs, guiding the government’s priorities.
“Congress is wandering away from the basic responsibilities of the federal
government or into trivia,” WashingtonWatch.com Webmaster Jim Harper writes. “Members of Congress should be getting back to basics and passing spending
bills on time – not posturing or introducing fanciful bills.” SOURCE: WashingtonWatch.com
More news from May, 2008 –
The Labor Dept. reported a slight drop in the unemployment rate to 5% and
36% of economists think the credit crisis is over or mostly over, while 62% say it is about half finished.
What are we to make of all of this? Our elected representatives are unr
esponsive to us. Our president seems to be clueless. Both presidential candidates are agents for SOW legislation, as well. The answer won’t be an easy one. You can only vote for whoever is running. Perhaps more honest people from the private sector should bite the bullet and run for President. Admittedly, they will be fodder for the sharks and need very thick skins. It would be better if they didn’t have a wife or kids to be attacked by the hateful main stream media. A grassroots movement will have to support them and get their message out.
Perhaps we can start with millions of bumper stickers that say, “I’m mad as hell and I’m not gonna take it anymore!”
There is no more time to do nothing.