QUESTION: Why are Bernanke and Bush playing Chicken Little, re: Bailout

[thoughtcrime1984]

What good was the 700B bailout then? Why are they only willing to give it a few days to "work"? What constitutes "working"? I thought it was done to allow banks to continue to offer credit to individuals and businesses as they always have done. So, to me, the bailout "working" would be having credit still available, which would not be any obvious change to the average person. Are they politicizing this to HELP McCain? Basically saying it is failing, knowing full well that more Dems were on board with it than Repubs, and that Obama has been touted as a leader of the Dems concerning the procurement of the 700B? Bush is already unpopular, is almost out the door, and he knows this. If he can finagle McCain into office, he can avoid any investigation to the criminal activities that he and Cheney have been involved in. Any thoughts?

[SmokingJacket]

1. I don't think it can help McCain. I think the bushies have given up on

the election.

I think it's all about moving $$ from the Treasury into private hands at this point. They want more $$, that's all.

[mckara]

2. I Expected Coordinated Rate Cuts Today...

So, I didn't sell any S&P contracts...

:nopity:

[gravity]

3. It will take a while to buy all the assets

The treasury and fed have started using some of its powers from the bill, like it is currently buying commercial paper, but it will be a while before it is able to buy the mortgage back securities from banks.

[Mojorabbit]

4. It is not just us

The whole world is having problems.

[thoughtcrime1984]

6. I understand that, but the rest of the world often seems to follow our lead

The US is the kingpin in the world financial markets, IMO.

[Mojorabbit]

7. No

investment banks, pension plans, insurance companies and more bought risky investments from wall street and all are paying the price now. There is a major problem and I have no idea if it can be fixed.

[thoughtcrime1984]

5. From a stock market standpoint, the bailout has done little to quell fears

I understand that, if that is what they mean by it not working. However, when they make this statement just days after passing the bill, they had to know that it would drive the market down further. I imagine most of the "big boys" are safely out of the market now, with 401K holders and small investors left holding the bag. This really smells bad...