Dow Plummets and so does the ASX

The world is in a crisis at the moment, and we have one country to blame – the United States of America. Amazingly, last night Australian time, or Monday Afternoon Washington US Time – the American Congress voted against a $700 Billion dollar bailout plan that would have helped restore, at the very least, some confidence back into the world markets. I bold the word, world, because this crisis is not just about Americans – it’s about the entire world and I think for all congresses power – they have utterly forgotten this point. Every article and review I have been sent on the bailout plan seems to focus on the fact that both the Republican and Democratic parties are “refusing to bailout rich Wall St investors”. This is such a ridiculous and misconceived ideology to take and I’ll tell you why.

This is not about Wall St and its very rich, now only rich, investors.

This is about ordinary Americans and other citizens in countries around the world who rely on their small investments and superannuation and pension funds as a means of living and retiring. It has nothing to do with bailing out rich Wall St investors, rather the US Congress should be focusing on bailing out the world financial markets above and beyond any thought to rich Wall St investors – who are now, have no doubt, very much poorer. As soon as the bailout was rejected last night, the Dow Jones fell 777.68 points, the largest one-day point drop in blue-chip history. I have no question most of this was reactionary and that the Dow will post huge gains later in the week when congress reconvenes and attempts to modify the bailout bill and vote on it again.

But the point still remains – they may not pass the bill again, and they may continue to take on this stupid ideology that its Wall St that they are bailing out – it is not. In total, US $1 Trillion was wiped off the value of the entire US stock market yesterday, and the ASX is down more than 220 points at the time I wrote this article. Do you honestly think that Mum and Dad are going to understand why $1 Trillion was just lost in the US Markets ? Of course they won’t. But they certainly will understand when they look into their superannuation and pension funds that they have taken a massive hit – and then they will start to ask questions and get angry.

Congress needs to stop focusing on a stupid, self-indulgent – “we will make wall st pay” philosophy – and rather just fix the problem. If they don’t, I really honestly fear what the result will be.