AP article: Bush says anxiety feeding market instability

Of course anxiety is feeding market instability.  But what is feeding the anxiety?  That is the million dollar question.  If someone was on “Who Wants to Be a Millionaire” and needed to phone a friend for the answer to this question, I would recommend that they just pick a taxpaying American citizen (virtually any taxpaying citizen) to be their lifeline.  Anxiety is feeding market instability.  Government is feeding the anxiety.

People are experiencing high levels of anxiety because their representatives, the people sent to Washington to actually REPRESENT them, in large part voted for this $850 billion bailout despite receiving an overwhelming barrage of letters and phone calls from their constituents urging them to do just the opposite.  Now, people are freaking out about the market, and they are freaking out because they are afraid government is out of control (which it is).

In the article referenced at the beginning of this blog post, Terrence Hunt writes, “President Bush said Friday that the government’s financial rescue plan was aggressive enough and big enough to work, but would take time to fully kick in.”

President Bush is wrong here.  Things may get sorted out eventually, but the reason everything seems to be going to hell in a hand-basket right now is directly because of how aggressive and big this financial “rescue” plan is.  Congress, the one branch put in place to give the people a true voice in government, shirked its most important duty and did exactly the opposite of what people wanted.

So, yeah, anxiety is now feeding the market instability.  Remember when the House voted down the first bailout proposal?  The market saw a dramatic drop, and people freaked out.  But what happened the next day?  It stabilized, and I think it may have actually gone up a little.  At the very least, it didn’t keep plummeting.  What has happened since both the Senate and the House passed the bailout proposal?  The market has continued to drop day after day after day, and now it has actually crashed for the first time since 1987.

Think this anxiety is going away anytime soon?  Think again.

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