Wednesday, October 1, 2008

The Free Market and the Economic Crisis

Last weekend, there was thought to be a deal on the $700 billion bailout, but it fell through. On Monday, the market then dropped 700 points and the dinosaur media immediately went into spin mode. The market crashed because the bailout fell through they crowed like Chicken Littles in stereo. Once again the dinosaur media's analysis was wrong. On the other hand, at least they're consistent.

To the contrary, the market tanked because Wall Street thought this socialist bill was about to be passed. When it was obvious that the bill in it's original form was dead, and that any new bill would have to contain tax payer protections and conservative principles, the market rebounded sharply yesterday and was down only a few points today.

The moral of this story is that free market capitalism works and socialism doesn't. It's just a shame that it's a lesson we have to repeat over and over.

1 comment:

Larry said...

Looks way down now--due to last night's Senate vote.

That would be my vote.

http://www.kitco.com/market/ shows all red (except for USD) in the "Indicators" box.

DJIA down 294.8, NASDAQ down 69.06 NSYE down 293.75 NIKKEI down213.5