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Fix the Credit Problem, Not its Symptoms

Posted on October 10, 2008

Two weeks ago Monday, markets traded down 300 points at the open. The sell-off seemed to be in anticipation of what was widely considered to be a poorly thought-out bailout plan. As it became clear that the $700 billion package was not going to be approved by the House, the Dow Jones Industrial Average plummeted another 500 points. Stock jockeys had apparently decided that a bad bailout would have been better than none.Fast-forward to the end of last week: During Friday s House vote, the Dow rallied 300 points . . . but once the bill passed, they promptly reversed and sold off. It s been m...

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bonds , economy , program , system