CHESSNOID

The stock indexes all moved lower in the last hour but closed better than their lowest lows for the day.  Watching the market with the release of more 12,000 layoffs form AT&T and other smaller companies puts the recession back as the headline news maker.  The big 3 automakers made another bailout pitch as they are all on the ropes trying to fight off bankruptcy.

I think because Congress has been talking in the billions of dollars, many companies think that we will just be able to print up cash on demand for their failing companies.  The money is actually taxpayer monies and I continue to oppose all the bailouts including the ones they have already instituted.

The argument by Congress and the companies asking for bailouts is that if we don’t do anything we will go into a severe recession or depression.  The problem is their perception is different from regular people like us.  We are already living in a severe recession and that is why we are not spending.  We are saving what we have and spending only on what we need. Why?  Because we already know the recession hit a year ago because our wallets and purses have told us.

These are tough times and I feel the companies that can’t survive because of poor decisions should be allowed to fail and go bankrupt.  Other companies will come and take their place. New jobs will be created as old ones are eliminated. The time transition to get through this will be rough but is necessary.  If we keep throwing money to prop up companies and real estate prices, the recession will continue to get more severe. If we let the markets correct itself, then we can recover much faster.

The Bush White House, Bernanke, Paulson, and the DEMOCRATIC controlled House and Senate have all failed the American people and the US economy with poor decisions.  The reason we are where we are now is because these people didn’t do what they were put in office to do. They actually made the problems worse by mucking around with interest rates and spending money we do not have available to spend.