So now we shall see if the politicians have the backbone to continue to do the right thing. The voting down of this bill is a start but this a long road. There are many, many traders and hedge funds who made bets predicated on the passage of this bill, Warren Buffett being one of them. CNBC is now trotting them all out to whine and bitch about how congress is not doing the people's business.
The stock market will now try to bully congress into passing something, anything so they can be made whole. Congress needs to be braced for failures, banks, hedge funds, traders, businesses as this is how capitalism works. Poorly capitalised, over leveraged, poorly managed, entities fail. This failure makes room for new and improved businesses and ideas to take their place. Do not believe those of little faith in capitalism when a storm blows in.
Ignore the fairweather capitalists !!
I would counsel any and all congressmen and women to not let the myopic floor traders and hedge fund managers who are stuck in their positions to reconsider the vote. Profligacy caused this and it sure as heck will not solve it.
I have to give Warren Buffett credit, you do not see him crying in his bowl over his Goldman investment form last week. He is a big boy and understands with great gains come great risk. Grovelling Bill Gross could learn a thing or two from Mr. Buffett on how to handle adversity with a little class.
Give more money to the FDIC both for insurance and for audit. INSOVLENT BANKS MUST BE CLOSED IMMEDIATELY.
I will agree with Cramer on one thing, deposit insurance limits should be raised 500k to a million sounds reasonable. $700 billion to shore up deposit insurance would do wonders for confidence. But this is just my opinion.
Next is transparency, FULL and IMMEDIATE on the part of financials. No transparency, you are shut down. No charter to operate period. The game must have rules or people will not particpate.
Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".
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