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  • 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.

     

     

     

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Anthony

Good to see that democracy still works even though the fat cats really want our money. I wasn't to eager to see the american people and their children and their children's children bail out the greed of the big business elite.The bailout is on us to be paid in full through our taxes and then some. HOORAY FOR DEMOCRACY

September 29, 2008 at 6:16 pm

craigh

What ever happened to the word "Traitor" in American Language? TRAITOR: Noun:a person who betrays friends, country, a cause, etc. [Latin tradere to hand over] What ever happened to the law governing a "Traitor" in our society? What ever happened to our "Statesmen" governing as "Patriots"? Have we "Traitors" among us? Will they be punished if by nothing else but de-frocking of their titles as Representatives or Senators? I hope they will be sought out and punished by the people by electing true patriots.

September 29, 2008 at 6:53 pm

Jalia Murphy

Pelosi got on TV and stated the 78% of us (the people) want this bailout. I would like to know where she got her number from because I can not find a single person that wants this bailout plan to pass. This bailout does not represent "the people" it represents the politicians! What ever happened to let the market take care of itself, isn't it called Laize Faire? What do the people get that were not stupid enough to buy a house that they could NOT afford to begin with? We get to help pay for the stupid people loosing their houses now (because they should not have made that decision in the first place). Lucky us. I had the opportunity to get one of these ARM loans, I thought better! In addition, we get to help wall street because obviously the crooked people as well as fat cat CEOs can take all the gains and their golden million dollar payouts as long as it is profitable for them, where are they now? Waiting for the taxpayers, much less fortunate than them to begin with, to pay their way out of what they caused!!!!!!!!!!!!

September 29, 2008 at 7:23 pm

Noelle

Apply the KISS principle to the Bailout. If there is such a 'sense of urgency" that we Americans have a "fear of loss" then why can't the negative media moguls explain what it means to the rank and file Main St of America. This is an economic situation whether American or Global that has to re-set itself and "no pain no gain"!

September 29, 2008 at 7:32 pm

Alexandra

Why do we let 400+ people decide for 35,000,000? Isn't it time for us - US Citizens - to increase the size of the House of Representatives so they are more responsive to us who write their paychecks!

September 29, 2008 at 8:11 pm

Scott Soenksen

Why is it that President Bush is taking all the blame for the effects of Bill Clinton's liberal policies? Shame on the democrats for trying to fix their failures with socialism! It's almost a miracle that the republicans came to their senses and acted as conservatives. Shame on them for letting the democrats get this far!

September 29, 2008 at 8:55 pm

Scotty

The KISS principle, Cold Gin time again!!!

September 29, 2008 at 9:20 pm

Scotty

Question, How many times will they say, we have to get a deal done ASAP? No honey we can't have a Christmas until congress gets a deal done. I need help, I just can't continue my life without a deal. I'm just scared.

September 29, 2008 at 9:47 pm

B Scott

Barney Frank should find a Democrat named Fred and together with Wilma Pelosi they could present their plan to put America back into the stone age, and at a press conference all they,d need to say is yuba duba doo. If the plan fails Fred could say WILMAAA.I hate to be sarcastic but these clowns could make a fortune on Saturday morning cartoons.

September 29, 2008 at 10:21 pm

Roger Hall

Why not have the sec chairman do the marks to markup ..Without any legislation necessary..Is that like the kid suggessting you let the air out of the times of an 18 wheeler stuck in a bridge and they want to dismatle the bridge first to remove it?

September 30, 2008 at 6:37 am

josephjsalas

This interdependence that Clinton keeps pimping out doesn't look as promising, to the US anyway, as it did in the 90's. Notice how addicted to over printed dollars Japanese banks are. And furthermore. What say we start calling these bailouts (wachovia) what they really are. Buyouts!

September 30, 2008 at 8:35 am

09/29/08 -Wall Street Bail Out Bill of 2008 Fails: A Victory for Freedom…and the Stock Market Too « Mcauleysworld’s Weblog

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

October 3, 2008 at 1:48 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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