The emotional roller coaster investors are riding around the globe caused by the volatility in the stock markets as measured by the .VIX are equally matched by the volatility of the .PBI, the Political Bailout Index. While the public can be caught up in the high drama associated with these political solutions as evidenced currently by the attempt to salvage the auto industry, it can be a nightmare for investors as they attempt to discern, from both the political rhetoric and the never ending voice of the financial media and their talking heads, which direction our nation through our elected leaders is moving.
A market today which saw the Dow futures plunge well below 200 points on news of the Senate’s failure to pass a bill submitted by the House closed up nearly 65 points on the news and belief that the White House will come to the rescue of General Motors and the Chrysler Corporation to prevent these former industry icons from collapsing into bankruptcy and subsequent liquidation.
I wrote previously on this blog about my concern that the failure by Republicans in the Senate to support an auto industry bailout by standing on principle would precipitate further erosion in the markets. Clearly if the White House, through the Treasury Department fails to act that will be the case when the markets open on Monday.
Investors dodged a bullet today thanks to the regognition by the President that allowing the auto industry to collapse would have a calamitous effect on the already battered and bruised economy. It is fascinating to observe the Republican leadership in the Senate break once again with the agenda of the President. The President has demonstrated a willingness for bipartisanship to seek solutions during this period of economic turmoil while it becomes increasingly clear that those unwilling to support much needed legislation do so to preserve their own political livelihood at the cost of the American public.
This is certainly standard and acceptable behavior within the political realm. However, we are facing extraordinay threats to our economy which call for extraordinary political behavior. The willingness to sacrifice three million jobs to protect one’s own political skin is unacceptable behavior.
At this time our nation needs leaders that are willing to look beyond the politics of self and enact legislation that stimulates our economy as opposed to decimating it. The markets need to know that our government is prepared where appropriate to provide support as needed until the economy can once again generate the employment growth and the asset appreciation necessary to sustain a viable economy and allow investors a smoother ride.
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Ceo4aday 
Investors On Bail Out Rollercoaster
Posted in business, tagged business, commentary, economy, finance, investing, politics, public, stock market on December 12, 2008| Leave a Comment »
The emotional roller coaster investors are riding around the globe caused by the volatility in the stock markets as measured by the .VIX are equally matched by the volatility of the .PBI, the Political Bailout Index. While the public can be caught up in the high drama associated with these political solutions as evidenced currently by the attempt to salvage the auto industry, it can be a nightmare for investors as they attempt to discern, from both the political rhetoric and the never ending voice of the financial media and their talking heads, which direction our nation through our elected leaders is moving.
A market today which saw the Dow futures plunge well below 200 points on news of the Senate’s failure to pass a bill submitted by the House closed up nearly 65 points on the news and belief that the White House will come to the rescue of General Motors and the Chrysler Corporation to prevent these former industry icons from collapsing into bankruptcy and subsequent liquidation.
I wrote previously on this blog about my concern that the failure by Republicans in the Senate to support an auto industry bailout by standing on principle would precipitate further erosion in the markets. Clearly if the White House, through the Treasury Department fails to act that will be the case when the markets open on Monday.
Investors dodged a bullet today thanks to the regognition by the President that allowing the auto industry to collapse would have a calamitous effect on the already battered and bruised economy. It is fascinating to observe the Republican leadership in the Senate break once again with the agenda of the President. The President has demonstrated a willingness for bipartisanship to seek solutions during this period of economic turmoil while it becomes increasingly clear that those unwilling to support much needed legislation do so to preserve their own political livelihood at the cost of the American public.
This is certainly standard and acceptable behavior within the political realm. However, we are facing extraordinay threats to our economy which call for extraordinary political behavior. The willingness to sacrifice three million jobs to protect one’s own political skin is unacceptable behavior.
At this time our nation needs leaders that are willing to look beyond the politics of self and enact legislation that stimulates our economy as opposed to decimating it. The markets need to know that our government is prepared where appropriate to provide support as needed until the economy can once again generate the employment growth and the asset appreciation necessary to sustain a viable economy and allow investors a smoother ride.
Read Full Post »