Posted by
Andrews on Tuesday, October 07, 2008 4:50:29 PM
I have a question for my readers.
Even assuming the economic "crisis" is every bit as bad as the media and the government claim, if there really is $700 billion dollars of absolutely worthless debt out there, does it justify the continuing plunge of the Dow and the continued faltering of financial markets?
Even if we ignore foreign investment, the Federal Reserve System alone has assets worth $14.2 trillion. So even taking the absolute worst case, we are talking about less than 5% of the capital available. And it is fairly concentrated as well, not spread all over the market. So, after more than a week of knowing about this bad debt, why are the markets continuing to plunge, with firms completely untouched by this problem losing 20% or more of their value?
Is there anything more than media driven panic behind most of the movement of the markets? And, if that is the case, what inspires the media to panic the public so badly? Either it is a mercenary desire to sell papers, a partisan desire to put Obama in office, or a bit of both. Honestly, I can think of no other explanation. (I suppose total economic illiteracy may play a part, but in that case, shouldn't they consult with someone a bit more informed?)
Is there anyone out there who could feel good about destroying the US economy, causing the collapse of capital markets, and eroding many individual's retirement funds all either to sell papers or win an election?