Now it's the day after tomorrow. The "intelligent" consensus is Congress will eventually get an economic deal done. I'm confident too they'll come together in the end to sell out the American people. After all, ours are the best politicians money can buy.
That notion greatly comforts the bourses*, having mostly rebounded after Monday's freefall. But watch out on Main Street. Industrial production ground to a halt over the last week. Zip Zero. Nada. If you produce steel, cars, machinery, or the like your customers canceled their orders last week. You in turn canceled orders with your suppliers this week. Next week it moves up the supply chain. Bye-bye Christmas bonus. If you're still employed.
I don't like this bailout plan. It sickens me -- as you can read two items below -- to the core that reckless spenders, borrowers, and hucksters get made whole. Why not do it all over again?
However, the current state of affairs means no credit. No credit means no new buildings, cars, cranes, planes, forklifts, elevators, plumbing, couches, carpet, clothes, and all the other crap we charge. Americans consume. Americans borrow to consume. That's the way it is.
And we pay the monthly installment with wages from our jobs. Are you feeling pretty saucy because your job isn't in manufacturing or construction? Don't be. Folks with jobs order meals at restaurants, buy earrings from the Piercing Pagoda, get their nails done, splurge on strudel, go to football games, take vacations, make sure their cars are insured, and all that other optional fun stuff.
Unemployed people don't.
So, good job Wall Street! You've created an economic Frankenstein now running roughshod over the country. And congratulations Congress! You've shrunk in response to the greatest challenge any of you arrogant fat cats will ever face. Right on Hanky Paulson! You told us to give you a $700 billion check and just trust you to do the right thing.
Oh, and the rest of the world. Don't get smug. The USA is taking its hits now, but you people haven't even begun pulling on the sweater. Europe's got the same toxic debt as here. China is rapidly losing its (one way) trading partner. Oil prices will follow demand downward hurting those sympathetic Middle Eastern sheiks and rabble rousers. Third world nations won't be getting aid.
Anybody own a yurt compound?
* Bourse = Stock Market. I used the more worldly term to ingratiate myself with the Nobel literary committee. Apparently, US writers are too insular:
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