Economic Armageddon or Darwinism

After yesterday's market drop and this morning's headlines, I expected to see soup lines on the way to work this morning. Instead it was a nice, normal commute.

Yesterday's 777 point drop, while the biggest single day point drop, represented a 7% decline in market value. While that hurt, it was no where close to the 22.6% drop in 1987. This is another example of how to lie with numbers. Pick the one that suits your argument and leave out the rest of the perspective. In 1987, the Dow lost about 500 points; however, it was only around 2600 when this happened.

This is the same as saying that someone who makes $100,000 gets a $7000 speeding ticket. That, again, hurts. However, this person isn't going to go bankrupt over it. Take someone who makes $26,000 a year gets a $5000 speeding ticket and it's going to be hard to make it through. For the former, the ticket represents less than 1 month of gross income. For the latter, the ticket represents more than 2 months of gross income. Which is worse?

We may see the market go down as far as it did in 1987 or 1929. Who knows? Right now, I am not sure anyone knows. As of 10:09 AM Eastern time today, the market is up 240 points.

What I do know is that we are witnessing Economic Darwinism. The strong are devouring the weak. BOA, Citigroup, and JP Morgan Chase obviously have some cash and are buying up the Countrywides, the Wachovias and the WaMUs. I'm sure there will be more culling of the herd, but this is what should happen and it should happen without government interference.

This article, by a Harvard economist, explains what needs to happen. It will be painful and continue to hurt, but we can get through it, just like we did in 1929, just like we did in 1987, and just like we did in 2001.

The question for each individual American is: Will you be one of the strong or one of the weak?

Who Blew The Bailout

MSM will tell you that it was the Republicans, but last I checked the Democrats held the majority in the House. All they needed was 218 votes to pass this bill. The Democrats currently hold 235 seats in the House. If they vote as a party, it passes.

They didn't

95 Democrats votes against this bill. When that many Democrats vote against it, you know it is a bad bill. When the press tells you that the looming economic earthquake is the fault of the Republicans, you know they are lying.

Joe Biden

In the run-up to the Vice Presidential debate this week, let's look at the Democratic VP Candidate, Joe Biden.

Sarah Palin has gotten most of the press coverage and criticism for either not being able to answer questions or not giving the right answer.

Check out this clip of Joe Biden in his interview with Katie Couric and listen very carefully to his first sentence.

Now that you have watched it, here's a couple of points:

1. In 1929, FDR was not president
2. Television had not been invented yet

FDR did get on the radio and give his fireside chats after 1932. The best part of this whole thing is Biden's lead in sentence: "Part of what a leader does is to install confidence and demonstrate that he or she knows what they are talking about." Then we get into the FDR comment.

What is really interesting is that according to Joe Biden's Wikipedia page, he was a double major at the University of Delaware in political science and history. Maybe it wasn't U.S. history.

Now ask yourself this:
1. Did you see this played over and over on CBS, NBC, or ABC?
2. If Sarah Palin had said this, do you think they would have questioned her qualifications to be VP?
3. Why do you think this is?

Weary

That's how I feel about the election. That's how I feel about watching the news. That's how I feel about talking to anyone about it.

I'm going to vote. I'll be voting for McCain. I'll be doing what I can to help get him elected here in Colorado. But I am tired of watching polls. I am tired of watching the news. I'm tired of arguing about people with why McCain should win.

To a certain point, I am resigned to whatever happens. This is Obama's election to lose. He should win. We have an unpopular President, an unstable economy, and people just want something different. However, the polls are close, but the only poll that matters is the one on November 4th. So I am not going to worry about them until them.

As far as the economy, all I can do is just take care of my own matters and do my best to be employed, to manage my finances, and provide for my family.

I'm just going to worry about what I can control and thrive regardless of the world situation.

That's it, I'm out.

That Makes Sense

Part of the left-wing blogosphere's claim that Sarah Palin faked her pregnancy was based on her daughter missing school and people at the school saying the daughter was pregnant. It turns out that she (the daughter) is pregnant. It also appears that this was known by the McCain team and that it didn't matter. Obama has come out and told everyone that families are off limits. That's a good move for him and I don't think the pregnancy will have a big negative effect on the campaign.

On the subject of families off limits, I think that kids are definitely off limits. Spouses too, unless they make political statements about the other side, then they are fair game. Endorsing your spouse and talking about them as a spouse - off limits. Attacking your opponents - game on.