Opinion
EDITORIAL: Credit constipation requires long-term market control
Many sectors of the public grudgingly supported the federal government’s bailout plan for financial institutions after repeated warnings from top-level officials that it was do-or-die for investors.
So Congress passed the measure supported by $700 billion from taxpayers, and many naively hoped that the problem would go “poof.” It didn’t, and now there is more dire financial news.
Federal Reserve Chairman Ben Bernanke painted a gloomy portrait of the economy Tuesday as creditors remained hesitant to lend. In so many words, Bernanke said the nation has a serious case of financial constipation.
President Bush promises the bailout laxative will work — eventually.
“We’re going to get through this,” the president said Tuesday during a speech in a Washington suburb. “Have faith, the economy is going to recover over time. I wish I could snap my fingers and make what happened stop. But that’s not the way it works.”
It’s sure not working so far. The Dow Jones industrial average was down a record 800 points at one juncture Monday and closed the day below 10,000 for the first time since 1994. In Tuesday afternoon trading, the three major U.S. stock indexes were down more than 3 percent.
The market, no doubt, will rebound as savvy investors snap up undervalued stocks. A longer term rebound could result if the Fed cuts its key interest rates this month as has been proposed.
While the bailout package may yet work, as Bush promises, and federal interest rate adjustments can be effective when used judiciously, they are simply Band-Aid solutions to the real problems plaguing Wall Street — a lack of federal control over destructive practices such as sub-prime lending.
Until such consistent control is gained, strap yourself in because the runaway Wall Street Roller Coaster will continue to hit the valleys at breakneck speed.
- Opinion
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Our view: Diversification, education key to job gains
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Scott Hutcheson: Enjoy fruits of summer before they're gone
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Jim Bailey: AHS identity, tradition come full circle
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Maleah Stringer: Coal warms up after chilly start
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Big Joe Clark: Needed: Sponsor for good news, and certainty
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Editorial: War will never end for those who lost loved ones
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Letter: Canine training camp was success, too
The veterinarians and staff of Devonshire Veterinary Clinic would like to thank the members of the Anderson Training and Obedience Club, Madison County 4-H Club and the Madison County 4-H Dog Obedience Club for making our first canine training camp a success.
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Our view: Diversification, education key to job gains
