Skip to main content

Postscript to the bailout madness

As we noted in an update to yesterday's post, the US House rejected a Treasury-sponsored $700 billion bailout bill that would have would have given Treasury Secretary Hank Paulson "broad authority" to purchase mortgage-backed junk paper from financial companies.

Part of the reason the bill failed in the House was the overwhelming response from Americans incensed at the proposed deal. Voters flooded their congressmen with mail, faxes, and phone calls, with many voicing their strong disapproval of the proposed bailout.

As a result, the tide surprisingly turned against congressional planners and unelected officials who had pushed for the bailout, some of whom shamelessly paraded the plan as a "rescue of Main Street", when in fact it is anything but that, especially when one examines the longer-term costs of such a rescue.

Unfortunately, the bailout proposal will not die so easily. The stock market is enjoying a rebound today, as news of a hoped-for salvaging of the bank bailout/"rescue plan" emerges.

That's why I'd like to point out Mish's recent posts, "Courageous Vote in the House", and, "The Bailout Failed. What's Next?", in which he urges readers to continue voicing their disapproval for any related bailout package.

If you are so inclined, please take a look at the information Mish has provided for contacting your elected officials about these soon to be voted on bailout measures. You can also pass this information along very easily to your friends and contacts in the media. The choice is yours!

Related posts and articles:

1. "Jim Rogers says let banks fail, clean out system" - Bloomberg.

2. "Stocks tumble, bonds rally on bailouts" - Finance Trends Matter.

3. "Comments on the bailout bill" - Finance Trends Matter.

4. "The Bailout Reader" - Mises.org.

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$BCORpic.twitter.com/xjsMk433H7
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at Financetrendsletter.com

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  



Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.

Moneyball: How the Red Sox Win Championships

Welcome, readers. To get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter.

The Boston Red Sox won their fourth World Series titleof the 21st century this week.

Having won their first Series in 86 years back in 2004, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it?

Quick background: in late 2002, team owner and hedge fund manager,John W. Henry(with his partners)bought the Boston Red Sox and its historic Fenway Park for a reported sum of $695 million.

Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship.

This brings us to one of my favorite scenes from the 2011 film, Moneyball, in which John W. Henry (played by Arliss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pitt) over to Boston with an excellent job off…