Dow Jones was down 260 points this afternoon. The Fed pumped in $41 Billion to stop the slide. This is the second time since August this has happened yet Bush tells us the economy is just great. He also claims there's no money for social programs, threatening to veto everything that comes out of Congress, yet it's OK to bail out big business. I really don't understand this, could some one explain without getting all testy about it.
2007-11-01 08:45:01 · 11 answers · asked by Anonymous in Politics & Government ➔ Politics
Actually that is the role of the Fed to control or manage the nations economy particulary through the use of monetary policy. They can have an impact on the amount of dollars in circulation or they can adjust interest rates to determine the cost of money. They are primarily interested in controlling the rate of inflation. I do not think their goal was was to bail out Wall Street.
I have always thought that Wall-Street was a mostly psychological exercise that sometimes run in stark contrast to reality or common sense. I also think that everything is so linked economically that the earning results of one company can have a systemic impact on the market as a whole in both a positive a negative way.
2007-11-01 08:56:46 · answer #1 · answered by Triumph 4 · 5⤊ 0⤋
What would you prefer, a stock market crash and standing on a bread line?
Veto everything? Did you know that the Bush administration is probably the most veto free in history? I think he's in second place.
No money for social programs? Did you know that in his first three years Bush put $300 Bn into social welfare and that's more than the entire 6 year run of Johnson even adjusted for inflation?
Did you know that all of this SCHIP flap started when Bush asked congress for MORE SCHIP money and they changed the bill to give even more money?
Did you know that every stock pundit has been shocked that the DOW hasn't gone down years ago?
It's not a business bail out. No business gets the money. You need them not to lose the money they have or you won't be able to work much less collect a pension. Where do you think the pension money comes from? Not your contribution, that's not enough.
You have trouble understanding these things because you are starting out with flawed information. The last time the DOW tanked, the economy added 125 thousand jobs.
Doesn't that mean anything?
Does Exxon reporting low earnings make you happy or sad?
Can you answer that without emotion and a clear analysis of how that news affects you? Does 'hating' Exxon make any fiscal difference?
The Dow is down 300 and that hurts day traders but, it has been up over 13,000 so if your in for the long term you're fine.
Calm down.
Spending is for today. Investment is for life.
2007-11-01 09:01:56 · answer #2 · answered by Anonymous · 1⤊ 1⤋
in case you desire a actual socialist, you greater perfect nationalise your industries, proportion your wealth thoroughly and tax the wealthy at above sixty 5% hahahaha. You stupid conservatives think of liberals are "undesirable"? i could like a communique with you, as an unorthodox marxist and progressive socialist. You rightists are closer to Fascism than Obama is to communism, have faith me.
2016-10-03 02:57:43 · answer #3 · answered by Anonymous · 0⤊ 0⤋
because the same owners of the fed reserve also own companies of the stocks. this is basically the bankers feeding themselves and making us pay for it via taxation. it has nothing to do with helping us, as much as people would like to believe. they are helping themsleves and we are the ones who will have to bear the brunt of the burden.
RRRR
2007-11-02 07:48:41 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Big business? DO you understand what a stock market crash can and will do to the average American? tsk tsk I thought you cared about the people...
2007-11-01 08:55:59 · answer #5 · answered by Erinyes 6 · 1⤊ 0⤋
It is the Fed who controls the flow of money and credit.
2007-11-01 08:51:33 · answer #6 · answered by csn0331 3 · 2⤊ 0⤋
To stave off a recession.
A repeat of autumn 1987.
2007-11-01 08:49:00 · answer #7 · answered by Think 1st 7 · 2⤊ 2⤋
Think about how many people the big businesses employ.
2007-11-01 08:50:21 · answer #8 · answered by Anonymous · 2⤊ 1⤋
The Bush administration has no problem bailing out millionaire friends but loathes giving health care to the poor.
2007-11-01 08:49:08 · answer #9 · answered by Holy Cow! 7 · 2⤊ 6⤋
Soon the dollar will be worth ten cents and the National Debt will be ten trillion dollars. We're in deep financial trouble. If I ran my finances like the federal government, I would be in jail.
2007-11-01 08:49:30 · answer #10 · answered by Zardoz 7 · 1⤊ 5⤋