Friday, October 3, 2008

US Election Politics again

Here they go again. Now those people up there are saying that hey, you do not need to spend USD700 billion. All you need is to spend USD250billion first. After Nov, you can request for more money.

Hello!! That is no difference from the current bailout because beyond the first USD250 billion, approval is needed by president or Congress! Now they want to send it all back to the drawing board for this stupid reason??

The only stupid reason I can think of for this kind of request is that they do not want to go down in history where they approved the biggest bailout since record keeping started. If they rejected this bailout again, they will escape the biggest bailout in history and the next US President has to do this deed. That is provided there is a US economy left to save.

Another stupid rumour that came out is the cutting of Fed rates. Hello!! Have they recently look at the rates and realised that it is no where near the Fed current rates? Interest rates is also sometimes proportionate to the risk. The higher the risk, the more is demanded for the risk premium. In this kind of volatile environment, low interest rate is absolutely of no use, especially when its a crisis of confidence! The only outcome of cutting rates now is stroking up inflation just as when inflation is easing downwards to help the businesses to contain costs.

These people are trying to prolong the downturn...

Stupid politics...

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