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.
These days President Bush and the managers of our monetary policy sound like prophets of doom when they talk about the economy. "The government's top economic experts warn that without immediate action by Congress, America could slip into a financial panic, and a distressing scenario would unfold," President Bush claimed when he addressed the nation on Wednesday, September 24.
A year ago, Congressman Ron Paul was just beginning to turn heads on the national electoral stage, owing to his presidential campaign's unexpected success at raising money. Congressman Paul was briefly applauded by media elites — until the full meaning of his message began to sink in. For Congressman Paul, as almost everybody knows by now, is an uncompromising foe of Big Government, and the greatest champion of the Constitution in Washington for at least a generation.
The Federal Deposit Insurance Corp. seized Washington Mutual Inc. (also known as WaMu bank) on September 25, and then brokered an emergency sale of the firm’s banking assets to JPMorgan Chase & Co. for $1.9 billion. As a thrift bank, WaMu’s business was focused mainly on taking deposits and originating home mortgages.
As the deepening financial crisis worsened yesterday, the Federal Reserve sought socialism as a cure and gobbled up another formerly private entity, the huge American International Group (AIG) insurance company, in an $85 billion bailout. The move was undertaken to prevent the bankruptcy of the nation's largest insurance company in what would have been, according to Bloomberg.com, "the worst financial collapse in history."