Triple-digit losses on the Dow are becoming a commonplace, but there are now ominous signs that the financial crisis of 2008 is entering a new and possibly more devastating phase. Thursday, October 9, saw the Dow plummet another 670 points, well below 9000 to a new five-year low. The latest catalyst for market decline is the likelihood that GM and possibly other automakers may soon be facing bankruptcy.
As the financial crisis continues, the Bush administration, led by Treasury Secretary Henry Paulson, is moving ahead to enact the unconstitutional and socialistic measures contained in the recently passed and misleadingly nicknamed "bailout bill" — misleading not because it's not a bailout, but because it's much more than that.
"Madame Speaker, only in Washington could a bill demonstrably worse than its predecessor be brought back for another vote and actually expect to gain votes," Congressman Ron Paul lamented on the floor of the House on Friday, October 3, the day the gargantuan financial bailout package was passed by the House, completing congressional action.
In a stunning defeat to the financial powers that be, the U.S. House of Representatives rejected the proposed $700 billion dollar bailout bill in the teeth of formidable media and political pressure. Only such a bailout, President Bush, Treasury Secretary Paulson, and Fed Chairman Bernanke have been insisting for more than a week, can possibly save the United States from an economic apocalypse — never mind that this massive spending bill was cobbled together in haste, in secret, and with little notion of how much taxpayer money might ultimately be required to buy up unknown amounts of bad mortgage-based assets.