Say Hello to Neel Kashkari......... Who??
Alright, we're 5 days past the Wall Street bailout, and the stock market is still in freefall, and worse - the credit crunch is circling the globe. On Monday alone, the drop in the markets worldwide cost investors $2.5 trillion. IN ONE DAY .....
Now, aside from the credit problems, the affect on the stock market is worse to a lot of Americans. Your 401k, retirement benefits, and other investments are shrinking like your weenie after jumping in an icebath... The only trouble is, it's too late to get out. All you can do now is wait it out, and let it come back up - relax, it always does eventually.
As far as the credit crunch, the Treasury Department has it's point man for the bailout. His name is Neel Kashkari - a 35 yr old whiz kid from Goldman Sachs who then moved to the Treasury (so he knows when to get out). Kashkari must be pretty good at the business, because he's managed to lose all his hair by his mid-30's... His job will be to dole out the $700 Billion set aside by Congress in the best way possible. Having to deal with a guy who looks like Dr. Evil may make the banks less likely to overindulge. ZIP IT !!!
Now for the bad news... It appears that the Bush Administration is quickly learning that the $700 Billion may still not be enough- it never is, is it? Fed Chairman Ben Bernanke is being pressured to drop the Prime lending rate, but the major move is that he just authorized the Fed to buy nearly $1.3 TRILLION of short term loans that many companies use to float themselves for daily and weekly loans, what is called commercial paper. I might know alot about economic theory, but even I'm learning a lot of this as I go along. Whatever I learn, I'll try to teach you along with me..
Stay tuned..... your future depends on it. Not mine - I'm independently wealthy, and I've had all my money in a shoebox.
.
7 comments:
his last name is Kashkari...like cash and carry. God help us!
No, no, Bobby.. It's KaashKaari . Ah hell, who am I kidding?
His name backwards is good advice - Kari Kash..
what 401k
Is it gone already, Moye?
What the economy needs in the long run is to have a process by which lessons are learned and discipline is restored.
You can't bail out greed. You can only facilitate it.
Let the private sector clean this up, fire the jerks who crashed their banks, and get things back on track. All government is going to do is what it is best at - taking from those who work hard and are productive, and give it to the lazy bums who aren't.
True Dat, Earl. It seems that DC's sole purpose is the constant redistribution of wealth. One side works one way, the other side tries to send it to the other end.
I would have to agree with Earl on this one as well.
Post a Comment