The End of the Economy

Ananda weeping (sacredthangkas.com)

• The Sky is Falling (literally):
• Small asteroid to burn up in Earth's atmosphere over Africa
• Financial Suicide:
• Upset over financial problems, man kills family, then himself
• The Sky is Falling (figuratively):
• Dow dives below 10,000 on credit, global recession fears

The end of the economy as we know it arrived today. Foreboding signs appeared two weeks ago as a preposterous $700 billion "corporate-welfare" bailout was proposed, miraculously failed on a vote, was retooled, and finally passed. Privatize the gains, socialize the losses. With a signature, president Bush officially made himself the "worst president ever" by signing the bailout he called for but could barely convince house Republicans to back. Then as the first trading day came and went (on Oct. 6, 2008) three days shy of the one year anniversary when the stock market hit its all time high of 14,164. Today Wall Street closed under 10,000 for the first time in four years. Today was also the biggest one day point drop (-800) -- although it was midday before the closing bell -- trumping last Monday's 777 point one day decline.

International markets tumbled on a credit tightening spree that ran through major economies. The Russian stock market had to suspend trading numerous times as it saw its biggest one day drop. The Chinese market, after recent protests that it was unaffected by the American mortgage and credit crises, saw a similarly precipitous drop. (Mortgage-backed securities that were trading for an estimated valuation lost value as defaults and foreclosures increased, which caused banks to tighten short term credit -- i.e., loaning to one another -- while the Bailout had no effect on declines).

In Europe, some currencies (e.g., the kroner) have already tanked. For an understanding of what the crisis is about and how and when it began, in addition to the failed bailout plan, listen to http://www.thisamericanlife.org/. For a more in-depth analysis of the problem, watch http://www.zeitgeistmovie.com/ (on fictional financial institutions such as the government-backed private bank called The "Federal" Reserve). For cheerful spin on the day's events, listen to http://www.marketplace.org/ (Public Radio). Former Lehman Brothers' CEO was cross examined in Washington for making 450 million while his bank failed. Tragically, this news is compounded by a six person murder suicide in Southern California stemming from investment declines and perceived financial ruin.

Today's Finance Headlines
• Officials pledge to move quickly on rescue
• Europe governments go their own way on crisis
• Bank of America reports profit drop, capital raise
• Stocks Cut Losses: Is It a Near-Term Bottom?
• ECB, euro nations try to soothe volatile markets
• Dow finishes below 10,000 for first time since...
• Rescue plan disappointment contributes to sell-off
• Wachovia, Citigroup, Wells agree to standstill

Buddhism:

• "Greed" (lobha)
• Social welfare and the responsibility of leaders
• The cause of poverty and social unrest