I think that its sensible to wait a few days more to see what will happen to stocks and share prices. The recovery after the media hype looks very impressing today. Its my thought that the market will recover without the bailout. Of course the corrupt politicians especially those that are meshed in with the crooked scam are rushing for the bailout. Hopefully the right people will be punished finacially and not the wrong people take up the pay check. A useful ban would be on credit cards and unsecured loans the finacial market has been allowed to act madly.
In 1929, Meyer Mishkin owned a shop in New York that sold silk shirts to workingmen. When the stock market crashed that October, he turned to his son, then a student at City College, and offered a version of this sentiment: It serves those rich scoundrels right.
A year later, as Wall Street’s problems were starting to spill into the broader economy, Mr. Mishkin’s store went out of business. He no longer had enough customers. His son had to go to work to support the family, and Mr. Mishkin never held a steady job again.
Frederic Mishkin — Meyer’s grandson and, until he stepped down a month ago, an ally of Ben Bernanke’s on the Federal Reserve Board — told me this story the other day, and its moral is obvious enough. Many people in Washington fear that the country is starting to spiral into a terrible downturn. And to their horror, they see the public, and many members of Congress, turning into modern-day Meyer Mishkins, more interested in punishing Wall Street than saving the economy.
Sad story that adds nicely to the hype.