The $850 Billion Bailout: What it Really Means

There's nothing worst than having to deal with the reality of the day: The US Economy is pure crap.

I've been posting and blogging about this topic for over a year, right after the end of my political run. The situation in America is simply abysmal and to quote Slayer, "I hate this shit economy/It might as well be sodomy!"

On September 29th after the original Bailout plan failed and the Dow Jones dropped 777 points, I ran around saying, "Well, the Second Great Depression is here." And, understandably... a lot of people said I was over-reacting. To a degree, they're right. to a degree, they're wrong. A critic of mine on a message board I go to a lot, someone who hasn't always been nice to me has been, at times, incredibly mean, actually defended me. He said, "You forgot to add a word: YET."

He had spoken to a bankruptcy judge that day and asked him what was going on, and the judge said that things are, in so many words and a gross oversimplification, fucked. He said that if something wasn't passed by Friday we would see the entire credit market freeze and you and I, in turn, would not be able to get money from our banks because everything would be frozen. In essence, THIS was the crisis America and, in turn, the world would face if something didn't happen fast.

So, on Tuesday when I saw that the Dow Jones had risen 400+ points and recovered over half of what it lost the day before... well, I realized the bailout was BULLSHIT!

Here's the situation: You have a spoiled child (Wall Street) who basically went out, got a toy, and played with it. After a while, the kid breaks the toy. The kid, realizing it wants a new toy to replace it, goes to it's parents and asks for a new toy. The parents say. "No, you broke your toy, so no new toy for you." The kid, angry, then throws a temper tantrum and starts breaking things. Finally, the parents, pissed about it say, "OK! OK! WE'LL THINK ABOUT IT! Now shut the hell up so we can make a decision!"

You can guess where I'm going with this. Stock Market Investors and Day Traders realized that, no matter what they did, the U.S. Government was going to come out and just do the bailout because, if they didn't, everyone would suffer... or, at the very least, they could make it look and feel like that was the case. Last Thursday, the U.S. Senate passed the Bailout Bill, and congress was now faced with a document that went from3 simple pages that they rejected to an over 300+ page behemoth that no one most likely read and was marked "URGENT! SIGN OR WE ALL DIE IN A SHITTY GLOBAL ECONOMY!"

Guess what happened?

So the U.S. Congress passed the bill, although about 90% of the people who voted on it, from their own testimony, did it holding their noses. An added $150 Billion was added to the bill for pork projects including $2 Million for Bow and Arrows for kids and money for, get this RACE TRACKS! Awesome, wasted cash!

On top of all of this, Wall Street banks, firms, etc, we're looking to get as much debt as possible to fall under this bailout, so we get that, too.

And today, the Dow closed below 10,000 for the first time since 2004, stock markets around the wall fell an AVERAGE OF 5-7%, governments are bailing out their banks, and the U.S. Government may have to bailout it's own states.

A Second Great Depression? Is it possible?

Tomorrow, I'll go into dept about this and deal with the taboo's associated with mentioning this.