Wednesday, September 24, 2008

The Financial Abyss

Okay, I know I'm just a fictional stockbroker. And lately my stock picks have been disasters. What do I know, right? But let me tell you something that's as true as rain to 90% of those involved in the financial industry: If Congress doesn't pass this bill the way Treasury Secretary Paulson and Federal Reserve Chairman Bernacke ask them to -- that is, without forcing too many punishments on bankers and insurance companies that will keep many from joining the bad-loan dumping system -- then the U.S. and world stock markets will crash like 1929 and 1987 (when the Dow Jones lost 20% in one day, after a months long decline).

The American public doesn't buy it, but this bailout is about them, not just Wall Street. The economy will shrink, and millions of jobs will be lost. The world financial system is on the verge of something even The Famous Author never saw in his 43 years of financial experience--a real collapse. The world is heavily invested here, and our system was/is too heavily leveraged into home mortgage credit. Wealth and confidence are evaporating weekly. New ripples are showing up from earlier closures and seizures.

TFA's father remembered getting a haircut with his father in 1929, shortly after the stock market crash. Both TFA's grandfather, a doctor, and the barber were of the opinion, screw those rich bastards on Wall Street, let'em keep jumping out of buildings. They didn't own any stock. TFA's father said a year later, the barber shop was closed, along with a third of the stores in Oceanside, California, and Grandpa was taking chickens as payment for his medical services.

Please, Congress and America, don't let politics keep this Fed-engineered shot at stability from happening. There's so much blame to go around, don't pick on one villain. Not now. Later if you want. Right now, we are slipping into a black hole.

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