The Economic Data
Exisitng home sales dropped from the previous reading, although it was in the neighborhood of the forecasts. My question is this, which goes right along with the current freeze that we have in the banks willingness to make new loans.
While we are in an economic slowdown, and as such new home sales would be expected to decline some, how much of the actual decline is due to the slowdown in economic activity, and how much is due to the fact that potential buyers that would be out there grabbing up this inventory can simply not get a loan?
If we can get back to the point of the banks beginning to trust each others credit worthiness, and we get a bailout package that puts liquidity back onto their balance sheets, perhaps this particular piece of economic data can improve before the next reporting period.
I have To Put My Foot Down
I have been catching little pieces of the testimony on TV by Bernanke and Paulson, and I now have to put my foot down and tell these politicians questioning them that the time has come to do the peoples business, my business, and to end the posturing and bickering that is meant to impress their constituents back home in an election year.
The bottom line is that no one is knowledgeable enough to really understand the depth of the crisis or the potential ramifications. Definitely not most of these guys that are questioning Bernanke and Paulson. These two guys are our best shot.
The bottom line is, according to those that know or at least appear to know, this bailout or government intervention or whatever you want to call it is necessary if we are to avoid something that could be much, much worse. Let's not do what we usually do, which is to wait until we are at the precipice.
It's Not Just The Bailout Plan Out There!
As if we didn't have enough to worry about with this bailout plan that is getting knocked around on Capital Hill this week, this headline came across a little while ago:
N.Korea ousts U.N. monitors, to restart atom bomb plant
We can't forget about them (or Iran).
Also, under the heading of if you want to play you gotta pay, the executives at Fnm, Fre, AIG and Lehman are the subject of a probe by the FBI.
I keep saying that I should stick with ESPN on TV and the comics when I read. Definitely happier stuff.