I have to agree with you Steve. The sun came up this morning, and the market is up. I got money from an ATM and filled my gas tank with a credit card. Yeah, people lost "money" yesterday. They "lost" because they sold for a lower price than they purchased. In short, they panicked. I've got stock, but I'm not selling and unfortunately don't have discreationary funds to buy more. The Dims are spinning because they don't want anyone looking at the root cause. They want a quick fix and then 'let's put the past behind us'. NO! The 'fix' has to include legislation that will not let this happen again.

Paulson is a creature of Wall St. He reacted to what his buddies told him. They panicked, he did the same.

This needs to be fixed, but not blindly and in a big rush.

Oh, seems the US isn't the only nation with 'mortgage problems'.

http://www.timesonline.co.uk/tol/money/
property_and_mortgages/article4849697.ece

Even before the bailout was voted upon, those who caused the crisis were out pitching a new global regulator and admitting that "For years to come, Wall Street and Washington will be unable to manage without strong co-operation from other markets."

Jeffrey Garten, Former Kissinger Policy Planner, CFR Member, Nixon And Clinton Administration Figure, Lehman Brothers Director, Calls For New Global Monetary Authority

We need a new Global Monetary Authority
By Jeffrey Garten

Even if the US's massive financial rescue operation succeeds, it should be followed by something even more far-reaching - the establishment of a Global Monetary Authority to oversee markets that have become borderless.

The US's dependence on massive inflows of foreign capital, roughly $3bn (€2bn, £1.6bn) a day, will surely increase now as Uncle Sam acquires $1,000bn in new obligations from current bail-outs. For years to come, Wall Street and Washington will be unable to manage without strong co-operation from other markets.

Excellent post Steve!!

Common sense has been in short supply in the past week.

The first step is for Congress to kill the Community Reinvestment Act of 1977. Secondly, slightly modify Mark to Market. Those two would be a good start.

Steve,

Iron might not crack, but it will rust.
Socialism has a shelf life, it's a violent
one though.
And it leaves behind nothing but destruction,
dispair, robbing all of hope and the death
of dreams.

Question of the day: "What is the defining characteristic of Socialism?"

Generally speaking those at the top of the food chain reap the greatest rewards. Those at the bottom work at the behest of those at the top with little chance to be "upwardly mobile."

Witness those at "the top" by pushing and voting in favor of the bailout.

The disparity between those that gained more cash for voting aye from those that didn't isn't that great but... to some of the morally bankrupt bastards in Congress, it doesn't take much.

FIX CAUSE, NOT JUST SYMPTOMS:

I've been screaming this all week. My cat's a nervous wreck.

Why isn't anyone else talking about this? To me it's the most salient point. Can anyone say 'good money after bad?

If my beater of a car had a fuel leak that kept catching fire, I wouldn't ask for some burn cream and lots more gas for my car. I'd take the sucker off the road, find out what was wrong and make sure it was fixed before I tanked-up again.

jeez...

This bailout with billions for the bankers is a band-aid on gangrene because, as you say, it only treats the symptoms and doesn't address the root cause.

I think this post pretty much sums up why I have had doubts about this bill or really any intervention from the beginning.

Intervention just for the sake of intervening isn't a good thing. If the government has to intervene, and they very well may and should, it needs to be with the clear goal of fixing some of the problems that caused this in the first place.

If that means the market drops and things get worse, then they do. We need to give up on this fairytale idea that the markets don't fall and that some markets don't need corrections.

"I've been screaming this all week. My cat's a nervous wreck."

I gotta tell you. That one hit my funny bone hard. I say that because my dog has looked up at me from her nap far to many times this past week with a worried look on her face every time I have another outburst.

I've been saying the same thing.

There seems to be a monstrous lack in our political leaders these days and it is COMMON SENSE! Excellent post, Steve. Any lawmaker worth his/her salt should read your entry before doing anything else in the coming days.

A doctor doesn't just send a patient into surgery without determining what the cause of the illness is, and making all attempts to reduce the necessity of that surgery.

Right now, we have a bunch of people in Congress who want to perform open heart surgery, but won't address the patient's smoking, stimulant abuse, and obesity.

Republicans will not "hold fast" because there are, unfortunately, nearly as many sell-outs and traitors in the rep party as in the dem. John Boehner leaps to mind. Interfering with the workings of Wall Street means the potential of doing damage to the big money contributors who cement the power of our supremely patriotic and selfless Washington freedom fighters. And God knows, we musn't have that!