what happened in the White house last night. The title of my yesterday's post is definitely not a good sign, even though I don't like the initial Paulson plan, it is still better to have a bailout plan. I am also sorry for the fall of WaMu. One of my friends is(was) currently working for WaMu and another of my friends started in WaMu and hired by Bear and Stern later on and eventually returned to her destiny JPMorgan Chase. While JPMorgan Chase is not a nice bank to its customer for its numerous and complicated fees, the good risk management saved its status.
Ohio, no matter how low key it is in the U.S. economy now as it is, provided some biggest political riddles starting from the second term of George W. Bush and now another Ohio man, John Boehner, from the west part of Ohio just helped to created another dismey on wall street in years. I cannot imagine what will happen after today's opening bell, not to mention this shock comes with together with the fall of WaMu. Or let's just say that the falling knee of the former CEO of Goldman Sachs says it all. Who have deep pockets should just buy anything and Warren Buffet is going to make more money.
The long term credit problem for the U.S. economy now is materializing day by day. Various liquidity drains show up in the economy. If this economic disaster actually happens, it states that the interruption of the flow of wealth from the rest of the world to the US leads to an immediate drop in the U.S. consumption. Market economy really has its own way to make everything happen just according to what it should be, except that this time the should-be event is really bad. I am sorry for the fact market economy has to work in its own way and the title of my yesterday's post.