Beginning of the Crash of 2008

This intrusion by the government into the financial systems of the USA has done nothing but to elongate the recovery period just like the action of FDR in 1933 elongated the 1929 crash from a recession into the Great Depression. We will come back to this bill in the future and realize that this was the point at which the USA passed from a country beginning a normal business cycle recession to a country entering into a multi-year depression.

This bill has done nothing to fix the problems with the credit markets. It has only allowed those on Wall Street to dump their bad investments as the result of bad decisions onto the biggest saps in history: the US taxpayers.

Every time the government interjects its will into private markets, the law of unintended consequences (LOUC) invariably comes into play. The LOUC in this case will be the elongation of the real estate slump, the saddling of the US taxpayer with foreign bad paper from non-US banks and investment entities, and the enrichment of those that caused the crisis in the first place.

We will revisit this bill since $700 Billion will only be the tip of the iceberg when the US Government buys these non-performing assets instead of addressing the real cause of the crisis: confidence. Buying of these assets will only depress the US Dollar, drive investment from the US shores due to need to cut interest rates by the Federal Reserve, and the tax increases necessary and implemented by the BHO (Obama) presidency.

This may be a worse depression than the 1930's except that the climate may actually be very comfortable during this time since I don't believe in AGW (anthropomorphic global warming - DYH: do your homework).