Risk Rap

Rapping About a World at Risk

Economy Starts to Freeze Up

They say if they don’t get this TARP deal done the credit markets will freeze. Heck they were saying that all this afternoon on CNBC. Its amazing how tempers are flaring even on CNBC about this bailout. They are trying their best to sell it, but Americans don’t like to be told what they must do. God bless em. Barney Frank and Nancy Pelosi have been trashing McCain all day. They think a deal will be struck by this weekend. The markets are hopeful this will be the case.

Today US equity markets were mixed with the S&P 500 up and the Dow is holding tough at 11,000 plus. Incredibly the DOW was up by 121 points after the FDIC seizure of WAMU and sale of assets to JP Morgan. Next up for seizure is Wachcovia and National City. Fortis the large Belgian Bank said today that it is sufficiently capitalized to remain solvent. As the banks continue to fall like so many cascading dominoes pretty soon the severity of the economic crisis will be more apparent. Make no mistake we are in a rough spot. The US dollar remained stable and US Treasuries yields are falling as money seeks a safe haven.

The Labor Department expects employment to fall by 90,000 jobs in its September Employment Report. Today the Commerce Department revised down second quarter GDP by .5% to annual growth of 2.8%.

This debate looms large and Obama and McCain have lots to talk about. Good thing McCain put country first and decided to show up. His countrymen want to hear what he has to say and don’t deserve a cold shoulder from this old warrior.

Heres a great song by Ray Charles and Betty Carter Baby its Cold Outside.

Risk: political apathy

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September 26, 2008 - Posted by | banking, credit crisis, EESA, jazz, McCain, Obama, politics, TARP | , , , , , , , , , ,

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