There was no "rally": What did $700B buy the markets this week?

[Pale Blue Dot]

700 Billion dollars. That, according to conservative estimates, is the amount of our money that the Feds pledged to dump into the markets this week. Here is the breakdown:

1. $85B into AIG;

2. $180B dumped into the markets on Thursday;

3. $500B bailout package announced on Friday.

All of the news stories that I've seen are touting the incredible recovery that the markets had this week. This meme is utter bullshit. What did our money buy?

We spent $700B and the Dow was down 40 pts. for the week. We threw $700B into the markets and they still lost money!

I thought that this was important to point out. Please don't operate under the illusion that this is over; it's only the end of the beginning of the end.

[NC_Nurse]

1. On CNN, I saw this article titled - Dow up most points in the last 6 years or

something like that. No accounting for the fact that we had the biggest DROP right before that. :crazy:

We are back where we started, but only by getting the taxpayers to BUY us back up to level. So we're actually DOWN...HELLO!

[Tandalayo_Scheisskopf]

2. I am so angry about these clowns throwing money around...

I am crosseyed.

[CoffeeCat]

3. I'll tell you what it bought us...(probably) NOTHING!

I'm pissed right now, so forgive me, but we're in a shitload of shit, folks.

Yes, we infused billions into these companies. Yes, they have money now. A big pile of it.

I'm assuming (and I'm not an expert, and my President won't explain a damn thing), that companies
need to LOAN OUT these billions in order for this money to SOLVE THE PROBLEM AT ALL. They need to use those piles
of money to make more money--to get their company healthy again.

The thing is--our economy is in recession. Are companies going to take out loans???? Will they?
I'm betting that many companies are going to be LESS INCLINED to take on more debt.

Companies rely on Main Street. If we aren't buying--companies aren't growing and they aren't taking
on more debt in the form of loans to grow their businesses.

I don't see this helping. At all. I see this as a hollow effort that is just delaying the inevitable
failure of these institutions. They'll fail because of the bad, bungled mortgages that they held and
because loaning of money has seized----but they'll finally fold because they won't get this infusion
of billions to businesses---because businesses won't be borrowing money.

Yes, some businesses will borrow money. However, we're in a RECESSION--and this contraction will leave
a lot of this money sitting there, leaving the financial health of these companies in jeopardy.

Again---I'm no expert. AND, my President is hiding under a rug in the Oval Office and he won't explain
any of this to me---so I'm forced to rely on my minor in economics from Iowa State University and my
intuition. So please...correct me if I'm wrong.

I'm just one of the serfs, floating around in an information vaccum...relying on a monkey President
and a bought-and-paid-for media who explains this mess by proclaiming, "It's a great time to buy!!!"

Can you tell I'm pissed?

[Pale Blue Dot]

4. Yes. This does NOTHING to stop rising unemployment, the decline

of real wages, and the rising foreclosure rate. It will make inflation far worse, and massively increase not only our national debt, but very likely our state, local and personal debt as well.

This bill keeps the wealthiest Americans off the bread lines. THAT'S FUCKING IT.

I'm pissed too.

[Neecy]

7. ...and just watch

After this massive taxpayer bailout, the very wealthy will squeal like pigs next year when President Obama raises their taxes. After all, the little people are supposed to pay the freight, doncha know.

[CoffeeCat]

8. Yes, Wall Street vs. Main Street...

There's the Wall Street end of this problem.

And there's the Main end of this problem. The money the government loaned these companies
only addresses the Wall Street end of the problem.

They are theorizing that these large firms will use this massive infusion to make more money--by loaning
the money to businesses.

I just don't see that happening, as easily as it would have happened in the past. We're in a recession.
Spending on Main Street has contracted. How can businesses grow (and take on more debt) when consumers
aren't spending?

I don't get it. And I wish someone would explain it to me.

[Aviation Pro]

5. We bought the end of the news cycle......

...and the status quo. That's what I reckon. This gutless administration is only concerned about perceptions. Reality? What is this 'reality' you speak of?

[alfredo]

6. Trickle down Socialism. Give money to the rich so they can open factories

in China. Trickle down? Yes, there is trickle down of cost to the taxpayer.

[galileoreloaded]

9. Its even worse than that. Any attempt to attach the "rich" will .....

just push them and private equity out of the US and to their summerhouses in places with banking privacy laws, and non-extradition. That is the real reason this will be so difficult, is the "take my ball and go home" crowd will do just that. They'll go home.
I can't believe I am saying this, but the only way the US remains relevant, is with a large and nasty war that spooks the European power base. We shall see. Don't get me started on the lack of tax revenue to cover our bills next year. Self reinforcing negative spiral.

[Tierra_y_Libertad]

10. It bought the politicians who signed on to the fraud some time to make it even worse.

They're "doing something" donchya know.

[neverforget]

11. It bought the crooks some more time to let it all crash after Nov 4.

[Zynx]

12. The issue wasn't the stock market. The stock market was only an indicator.

The issue was that the credit system was going to fail. It looks like they might have averted that for now.