The Cody Word
  • September 29, 2008 01:52 PM EDT by Cody Willard

    Wall Street Bail Out Bill of 2008 Fails: A Victory for Freedom...and the Stock Market Too

    I am shocked that our democracy might work after all.  Capitalism and private ownership (in this case of losses) still matter in this country after all.

    As I wrote last week -- 

    "We probably hit DJIA 10,000 in a heart beat if we don’t pass this bill. We probably spike 500 or 1000 points in the near term if we do pass this bill….and then we’ll eventually see DJIA 9,000 or lower because central allocation of capital is always politically-driven and not profit-driven…and only profits make stocks go up. These guys who think this destruction of capitalism and the right to profits is a bullish thing are dead wrong."

    And the market is indeed crashing on the news that this Wall Street Bail Out Bill of 2008 isn't looking like it's going to pass.   Which means I'm going to be getting bullish again, because in the long run, the only thing that matters to the stock market and this economy is how much profits are running through the system...and we just ensured that our profit-driven system (that does indeed cycle and create both booms and busts as it has always done, but that over time has created the most wealthy nation in the history of the planet) remains intact.  

    I'm sure not going to be in any rush, because the bad times that were coming because the virtuous cycles had turned to vicious cycles anyway and no matter what we're going to be in for some more pain in the near-term in this economy (and therefore also likely in the markets)...

    But I'm going to be getting much more bullish (and probably start buying stocks again) much sooner than I would have if this bill had passed.

     

     

     

same as it ever was

The Wall Street Bailout Bill: Bush McCain Obama et al. The Realignment Of American Politics: Anderson Baldwin Carter Choate Clemente Gonzalez Gravel Kaptur Kucinich McKinney Nader Paul Perot Sheehan Ventura

September 29, 2008 at 2:34 pm

Zack

Right on Cody! I am proud to have called my Reps and Senators a few times, putting pressure on them not to vote on this bill.

September 29, 2008 at 2:32 pm

Eric

Cody, I say this is good news, but I still have a queasy feeling in my stomach. The bailout Bill was a nasty thing and I was surprised the folks in the House had the ‘nads to vote it down. My stocks took a hit, but I believe that is nothing compared to the cost of the bailout bill.

September 29, 2008 at 2:29 pm

A Believer

Thank God it didn't pass.we will be better off

September 29, 2008 at 2:27 pm

Clyde Shaw

??? Is some of this panic to bail out wall street possibly a smokescreen of a few banks trying to bypass the "monoply laws/investigations" to complete their takeovers ??????

September 29, 2008 at 2:26 pm

A Believer

Thank God

September 29, 2008 at 2:26 pm

tami Butler

About time! Men are actually making history again, relying on their intelligence, wisdom and character as opposed to popularity. This social happy playground we have been financing the last forty years has gotten us here, we have no more money, that’s it, no more bailing out! The bed has been made and it is time to lay in it! Like I always told my daughters growing up, here is your money, when you spend it, it's gone, so be careful on what you do with it, it may be awhile until you get more! I plan on starting a blog myself as of today, for the first time in a long time, I feel there is hope, we as Americans are going to have to take responsibility, it will be a little rough from time to time, but WILL pay off in the end! I pray this fails if they try to vote this a second time.

September 29, 2008 at 2:25 pm

EcoMom

This is a great day for freedom and for our country. Let's continue in making our voices heard. We still have a bitter pill to swallow, but in the end we will make our country great once again!

September 29, 2008 at 2:25 pm

John

HOOOOOO RAAAAAAYYYYYY for us! Those that created the mess, then ironically came up with the solution - that wanted and voted for this insanity - obviously DO NOT represent us the working, take few risks and pay our bills folks.

September 29, 2008 at 2:14 pm

Nick

Awesome! I guess all those emails to our elected readers did the trick. Let the chanmpagne corks( and that pesky credit bubble ) pop!

September 29, 2008 at 2:12 pm

Justin

They banned short selling too. No one to cover their positions. Just more evidence that our stock market is in a bubble. Government bail out fails to pass and it immediatly crashes 500 points. If things are really as bad as they say they are though, don't expect the government to sit it out long. My gut is telling me they'll start running the printing presses if something major fails. God it's good to see Buffet losing his shirt. I never liked the guy and I never did get the hype behind him.

September 29, 2008 at 2:09 pm

Jethro

Too much acid at a dead show Cody ?

September 29, 2008 at 2:07 pm

about this blog

  • Cody Willard is an anchor on the FOX Business Network. Willard is also the principal of an investment management company. He was a long-time featured columnist for the Financial Times and TheStreet.com as well as a regular featured economist and stock picker on CNBC's ''Kudlow & Company."

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