Money Beat

Ron Paul for Treasury Secretary. He is the only counter to these Keynesians run amok. He and Peter Schiff have correctly predicted all that is happening for nearly a decade now even in the face of mounting laughter and denial by other so called experts.

The problem is people still see the Obama administration looming over the horizon. If you want the markets to rise all it will take is a pre-emptive resignation by Obama.

Surely the stupid members of Congress did not really expect the banks to use our Billions wisely.They got into this mess by being greedy and stupid and that is not something you can recover from overnight.
We should demand that they give the money to the U.S. Citizens and let us bring the economy back up the old fashion way--CAPITALISM!

howwouldiknow - Nice partisan nonsense. Are you also for the bombing of Persians?

This whole economic mess was orchestrated by investors. Raise the price of everything sky high & then pull all your money out when it's at its height. Watch it all fall like a rock, then buy up the "extremely undervalued" assets with all the profits you made from running it up like that. Just like the price of gas. Do you really believe "worldwide demand" doubled the price in six months and then fell so sharply in six days? This economic mess is not an accident, nor is it stupidity.

We don't know everything that's going on behind the scenes. $125 billion is really small potatoes compared to the two trillion which the fed has reportedly injected into the financial system. If that money, nearly all printed, were spent in the market place it would cause a rise in inflation and a fall in the value of the dollar. That hasn't happened because the banks are, apparently, restricted to using this money only for loans. But banks can only lend money to people who want to borrow it, so if there is no increase in demand there can be no increase in loans, unless banks lower their lending standards, which they are, apparently, not doing. So, as near as I can tell, that money is just sitting there on the banks' balance sheets doing nothing.

Your dead on Market Man! Just look at the price of gas. The high prices we were paying 3 months ago was NOT caused by supply and demand issues rather market speculation that artificially inflated prices. There has been no increase in oil production, rather, OPEC cut production about 2 weeks ago. So much for the "drill, baby, drill" crowd. By the way, I haven't heard from those folks since prices have dropped!

Just as normal...Paulson & Bernanke don't know what to do. If they don't, why are they holding the offices they have? Let Obama's appointed ones take over. Jan. can't come soon enough!

Just as normal...Paulson & Bernanke don't know what to do. If they don't, why are they holding the offices they have? Let Obama's appointed ones take over. Jan. can't come soon enough!

It looks like someone (ANYONE!) in Washington would show some leadership on the economy. I am SO disgusted with Bush and Congress! How could America been so stupid to put these people in office!

@Danny

Bush was in office because John Kerry was a flake/flip flopper and many people didn't trust him. Bush wasn't much better, and that was reflected in his narrow victory. Pretty bad choice between those two.

The American economy is soon to have a total breakdown. As job losses mount and government spending greatly escalates under Obama, the world will declare the dollar to be worthless and gold will shoot throught the roof. It is over for this land of greed by the rich and handouts for multitudes of millions who do not deserve all they get. Find some country place and ride out the coming storm is the best that you can do.

Market Manipulation - I agree with steve9337 - you are "dead on!" Steve9337 - Interesting point that you brought up about no one calling for drilling anymore.Hmmm.
However, we know this market will not correct itself as soon as it has in the past, this economy, which is past recession and going deeper into a Depression, or at least a NY minute away from close to the 1929 Depression will get worse if Congress does not bail out the big 3 automakers.
Albeit their financial woes are basically their fault but to have thousands of their workers let go bcz Congress says its their fault, is to worsen the already failed economy and as always, the "little person" on the manufacturing totem pole gets the brunt of this catastrophe.

I'm thinking we're all screwed. In 6 months, we'll long for these days.

Go read the blogs. there was staunch opposition to a bail out because the problem was not that the banks and AIG did not have the monies to get the job done, they did not have the money to give themselves big bonuses or over bloated salaries, so the bail out covered that but not efficiency or the reason for the failures. The chips should have fallen where they are even without the bail out. That Paulson guy, his thinking is in the clouds. Freeze the accounts of all the millionaires in the banking businesses that received the bail out and stop the bleeding of the tax payers. Any further bail out should go directly to the tax payers and to retirement accounts that have lost millions in savings. Stop this day light highway robbery by banks and financial institutions and arrest all those who have looted the public. Money should not just disappear. When I said Let the chips fall where they may and Paulson and Berneke the babsy twins of wall street went ahead any way and the chips are falling even with a bail out and the deficit just has gone up by 700 billion dollars. At least that 700 billion could have financed saving people during the difficult times that the recession is about to bring.

Instead of giving the money to the car makers, give it to people who buy new cars. If a taxpayer in the 25% bracket was given a $10,000 tax credit for buying a new car, the cost to the government would be $2500. $25 billion used this manner would buy 10 million cars.

Funny, I keep reading that banks can't give away money. So typical news media, pick one problem and make it an industry wide problem. The news media in this country have been doing happy dances with all the negative news they can print because it scares people into trying to get even more news...more viewers..more web hits...higher ratings..higher ratings=more money for the news medias. and no I'm not saying the economy isn't in tatters, I'm saying the news media is fanning the flames.

Capricorn Cory your right. I got two calls asking if I needed any loans for real property or work. We have been dupped by our leaders so they could protect their pals and their and our leaders million dollar investments.

Big mess, Big mess...Giving rich people more money to waste is not helping anybody's economy - domestic or foreign. Give me the money and I'll buy myself out of debt and then I'll turn around and spend money in the US economy and I'll be paying taxes at the same time. Rich people don't pay taxes when they spend money. Only the working slob payes taxes. It's our money. Give it to us and watch us bring this huge mess right out of the mess it's in. I don't need a corporate jet but I could sure use a new Chevrolet or a Ford or a Dodge. Hell, I might even buy me a newer or nicer home and maybe I could afford to take a trip to see the USA and spread some of my good fortune around THIS country. Yeah, you're giving that money to all the wrong people. You scratch my back and I guarantee you that I'll scratch yours. Bet it wouldn't cost nearly as much as 750 Billion Dollars...Won't happen though because that makes too much good sense. Governments don't work that way...................

gjkotw01 - You are right- give the money to the people. But then this country/gov't is so anti-socialism, which is how they perceive giving the money to the people, that they would never do that even though that would definitely turn this economy around. But then there would have to be restrictions, to make sure that the people use most of that money to pay back their mortgages, which would bail out the banks for sure and pay back the money owed on their credit cards, also, another sure fire to bail out the credit card companies and the banks. Then they could use the remainder of their share of the money to shop in the stores that are now laying off or closing...which would be another boost to the economy! But no, they give it to the CEO's who use it to further their financial gains. Like the CEO's of AIG who went on a spa spree spending $450K each. The gov't s/h arrest them for fraudulent use of gov't funds and make them return every cent. Then the gov't s/h take the rest of that bailout money back from the CEO's of AIG and hire accountants to pay the employees their salaries and make sure that the funds were used to make the co. solvent again.
That is how they should give the money to the automakers. Not to the CEO's but to the workers to pay off their debts and the accountants to make sure that the money was used only to make "Green" cars, pay off the Co's debts and make sure that the money that was already given to them for retooling is actually being used for that. So far they have not used the retooling funds for that purpose.

Huh.... You're user name, "huh?", perfectly fits your ignorance of this mess blaming it on Obama. What's occurring in the markets is the result of 8 years of "hands off" by the Bush administration. 8 years of neglect, does not turn around over night. Do you get it or not... huh?

Paulson gave the money to the big banks and did not buy troubled assets as promised. Country was left worse off than before. Economic Katrina. People drowning and crying out for help and Paulson recapitalizes the big banks. Heckuva Job Pauly! If it's not criminal,it should be.

People, President Elect Obama, did
not, I repeat did not, start this

financial mess, BUSH still is our

President, with Republicans they

always go out with a bang!!!!!!

STL

People who blame this mess on Obama are the same ones who still blame Clinton for Bush's troubles. Get real. Bush was a disaster. Period. Obama is going to fix this mess. I like what I see. And so does the market, rising 500 points on the news of his new Teasury Sec. appointment. The grown-ups are coming back in without a second to spare.

People who blame this on anyone except for the people who don't pay their own bills & the CEO's who have wasted money & not kept to a budget are nuts. I will say Ithink the government needs something better in place to help out out of work people for a period of time. The bail out is not going to work.