Sunday, September 14, 2008

When the $h*t Hits the Fan

You know it's bad when Greenspan says the economy is in a once-in-a-century crisis, because that time frame includes, um, the Great Depression for chrissakes!

I re-subscribed to the WSJ recently, and I've been online perusing the comment sections of the lead articles. Ninety percent of what's said I can't even repeat, but I have to say I learn more from the commenters than I do from the articles. Cursing aside, the workers on the Street are freaking out and doing so with great articulation and conviction. And after a little while I started to wonder, should I be freaking out too? Does it matter to me if an investment bank or two goes under? Right now, no, I'm getting ready to call it a night with the A/C, a propped pillow, and a nice book of fiction. In the morning there will be more news and I can figure out if the sky is falling on me, as well as on Lehman, Merrill, AIG, etc.

One interesting note on the WSJ article comments- many want to do unspeakable things to Bush, Greenspan, Paulson, and the Republican party in general. I can't quite figure out why, a lot of industry-speak and jargon thrown around. But there was also a lot of talk about the repeal of the Glass-Steagall Act, signed by none other than President Clinton. The act separated investment banking from commercial banking, and many say its repeal led to subprime mortgage stupidity. Along with Bush, Greenspan, Paulson, and the Republican party in general. PBS has a nice timeline of the Glass-Steagall act here, for those interested.

Back in the morning with, I'm sure, news so bad it makes you wish for a breadline. That Greenspan, he's such a joker.

2 comments:

Suzy said...

It does sort of leave you in a state of apprehension before you flip on the news each morning. Almost makes me glad I don't have a lot of money in the markets to worry about. I also echo your general ponderings about whether or not individual savers should be concerned... beyond the plummeting interest rate on my ING account.

Thanks for the article link... I think I'm about to break down on the WSJ subscription as well. For now I'll read up on this...

PiggyBankBlues said...

thanks, suzy. i finally bit the bullet because there's just so much going on, nobody reports it like the wsj. i have to say, though, the writing is a little weird under murdoch. not quite as staid, but i guess melodramatic times call for melodramatic writing...