Up Too Late / The Bailout

First, I don't really know why I am up right now. I really need my sleep. Second, on a topic I wasn't going to blog about...

CNN has an article titled: Congressional Leaders Reach Tentative Deal On Bailout. By then end of this post it will have been updated in under 20 minutes and hence is scarce on details. But there is a single part of the three paragraphed article I want to quote and comment on:

The aim of the deal is to prevent credit from drying up and causing a meltdown of the U.S. economy.

• First, we are talking about the world economy. There is saying that when the U.S. sneezes (economically) the rest of the world catches cold. This is much bigger than the average joe understands.
• Second, when CNN says "meltdown" they mean it. The MSM (mainstream media) hasn't been completely truthful on the current crisis (and I will call it a crisis). The financial periodicals are comparing it to late 1929 -- the beginning of the Great Depression -- and for good reason.
• Third, damn near every American (or person on this planet for that matter) will be affected by this deal. You make think that New York is too far away to matter but odds are your mutual fund, 401k, or pension is tied up in this mess. Sorry, but it sucks for you.
• Fourth, CNN says "aim." The real point here is the people that understand the current situation (there are very few, a few dozen at most; some of us simply believe those people are right [and maybe understand why they are]) may or may not be fixed by a "Rescue Package." This is shooting from the hip, that is not secret, but there isn't a better plan. We are certainly damned if we don't pass this bill (and the global economy) and may be if we do. The only certainty is that not trying is sure to fail; the bill at least has a chance to help things.
• Fifth (I am almost done): don't blame your incumbents come election time, even though they will have almost certainly voted for a $700b bill that you don't like. Given the reasons above it is the most responsible thing to do even if their constituents do not like it.
• Finally: I won't say much more about this in future posts unless someone specifically asks me to in a comment. I am a finance/econ major, even if I lack a PhD. I can explain the broadest components of the crisis, the bill, and why it matters if anyone cares. (E.g., what drying up credit means [more than most people realize] and why this is so important [the aspects the MSM keeps missing.])
  

P.S. Rumor is that I have another reader. A 250% increase in a month isn't bad! (Ok, so that means 5 people...)

P.P.S.: For most of the people that read (meaning all five) who care very little about this type of post I have another coming up. I just have to actually type up half of it, the half that was written in pencil instead of typed. And I should have another Bethel University Commons Time Lapse Video up soon.