Leaving for Art show so perhaps limited Update on Thursday and no Update on Friday.

New readers – This s stream of consciousness writing – please allow for errors

Burnt Out Over Bailout

List of observations

1) Poor sales job by all participants who want this. This is a rescue plan for a Credit Squeeze that impact’s Main Street significantly (see yesterday’s Update)

2) President Roosevelt "The only thing we have to fear is fear itself." Fear is accelerating this whole process and that’s the danger of not acting.

3) Almost everyone feels like cows being stampeded over a cliff- just like they were with WMD’s in Iraq.

4) This rescue plan does not have the broad support of the American people. Conversely the government has to show it has the will to do something about the problem.

5) Aside from all the technical stuff in Updates (3MTB’s LIBOR etc) how to tell there is a Credit Squeeze happening is the Fed reduced interest rates from 5% to 2% and mortgage rates barely budged.

6) As a society we are vulnerable because we are overly dependent on credit. Houses, cars, credit cards etc. We even lower taxes to fight wars (Iraq). Our credit addiction is coming back to bite us and this Credit Squeeze is just round one.

7) Wall Street likes this plan too much.

8) Biggest missing piece – No financial companies, their CEO’s, lobbyists, employees and relatives, especially those who ask for help from this plan, should ever be allowed to contribute to any political campaign.

9) The plan does not focus enough on Main Street.

10) The two root causes – Our dependency on credit and lack of regulation/regulators who allowed this crisis to happen are not addressed.

Burnt out over this debate among Americans, so here is another view from across the pond Link to editorial in Financial Times (Eng.) "Congress Decides its Worth Risking a Depression "

Deficits

One major fiscal reason to favor Democrats over Republicans is The Dow flourished from 3000 to 11,000 under Clinton and flatlined at 11,000 under Bush. Now we have the biggest economic crisis of our lifetime.

The second reason is this deficit chart of the last 3/4 decades chart. (Thanks to one of you who sent in chart) Note – the Chart does not have the last 4 Bush years where the deficit skyrockets higher and does not contain Iraq war costs. Republicans are addicted to Borrowing and spending

Almost all Republican’s do is fiscally talk the talk and almost never walk the walk. (Click on chart below and pass it on.)

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