Replies

"Kind of like his daddy, who also couldn't be bothered with the economy."

Wow, you think Bush is responsible for the gigantic bubbles that are deflating?

What economic stimulis would bail out JP Morgan, IBM, GE, AT&T, Fannie Mae, Freddie Mac, Lucent, etc? What econimic stimulis package would bail out people who have bid up the price of housing 30% (or more) in the last few years in vast areas of the country?

I'm for massive reductions in Federal spending and regulations but how do you do that when the National Socialist Party is in control of the Senate? Tax cuts without reductions in spending are not a good idea last I heard...

"NEW YORK, Oct. 7 — Spreads on U.S. dollar swaps pushed wider on Monday, with 10-year spreads breaking to highs not seen since March as renewed worries about major global banks and a broad-based flight to safe assets dented all credit spreads.

Activity in the market was slow and focused on equity markets hitting new multi-year lows and talk of capital strength problems at two major banks -- Germany's Commerzbank (DE:CBKG) and Credit Suisse (VX:CSGZn).

Matters were not helped much after an executive at HSBC, Europe's biggest bank by market value, said it was worried about the potential for systemic risk jamming the global financial sector."

"...Because the swaps market trades primarily between major financial institutions, worries about eroding credit quality at banks or insurance companies tends to cause a higher premium on transactions -- pushing spreads higher against risk-free Treasuries.

Thus swap spreads have suffered in the past month as investors fret about how insurance companies and banks are exposed to the relentless slide in global stocks and as ballooning bankruptcies still pounding balance sheets. Agency and corporate bond spreads also took a blow on Monday...

...Back in July swap spreads widened sharply after J.P. Morgan Chase (NYSE:JPM) and Citigroup (NYSE:C) -- two of the largest players in the derivatives market -- came under increased scrutiny for its trading practices with bankrupt energy trader Enron Corp. Rumors also swirled about J.P. Morgan Chase's losses from bankruptcies and Latin America.

Federal Reserve Chairman Alan Greenspan insisted on Monday that despite business failures and heavy investor losses, the U.S. financial system remains in good shape, pointing to strong bank profits and rates of return on capital. Still, the S&P financial index fell more than 3 percent."

The word "insist" is a red flag. Tread very carefully. Take steps to protect yourself.

I'm for massive reductions in Federal spending and regulations but how do you do that when the National Socialist Party is in control of the Senate? Tax cuts without reductions in spending are not a good idea last I heard...

Much as it pains me to say this our Republican congress criters haven't been much help. They have also been on spending binge like drunken sailors in a whorehouse....

RE #9

Thanks for doing my response to his comment. You saved my time ! :) It is tiring after a while to type in a same answer to the same repeated comments. Many people think that some stimulus package can get us out of current economic downturn. Even the massive taxcut and deregulation cannot save us from this trouble.

Tax cuts are a good idea, period.