Log in

No account? Create an account
Messenger Icon

Misery loves company, and I just watched the House vote on the bill to unfreeze the credit market. Before the bill even finished, the Dow Jones slammed down seven hundred points, and then leveled off for a while at ~ -500.

Right now, things are pretty tense all around the world. For example, if the credit system freezes (namely banks refuse to make the frequent and largely unseen loans to each other), then factories cannot take the needed overnight loans to pay workers at the end of the month; essentially, much of the working economy depends on very large, very low interest rate loans made for short periods of time. When these stop or when the interest rates become burdensome, everything potentially grinds to a halt.

That is really really really bad. So bad. And THAT is why such an economic bill was so important. The bill was a bad idea (it had potential for incredible profit - but that was potential only), but we're long past the stage good ideas could have been implemented. I hope the market doesn't panic and fail in the next few days.