“Economic Catastrophe” What might happen
—WCN Warning: Economic/Terrorist event possible—
As we wait for the markets to open (in about 40 minutes from this writing), many readers of WCN are asking “what will happen if the economy ‘melts down?’”
That’s a good question. The answer to which brought a chilling silence to the assembled Congressional leaders when Bernanke and Paulson briefed them several days ago, pleading for the adoption of the $700B bailout plan.
In short, the result could very well be the end of the United States of America as a viable economic entity. To be blunt and even shorter: Chaos.
The United States is an economic system that depends on a lot of moving parts working together in complicated subsystems. Money must flow, in the form of credit, trucks must roll, supplying a long supply line of commerce that stretches from the manufacturer of millions of products all the way to the checkout stand, and people must go to work so they can earn paychecks that go into bank accounts so all of this can be paid for.
If there’s no money to buy loads of plastic, made-in-China stuff at Wal-Mart, there are no jobs for the Wal-Mart checkers, with no money going into THEIR checking accounts, etc. If money can’t flow to pay for fuel, big trucks pulling semi-trailers can roll into your local Safeway to deliver the food that you use YOUR bank credits to buy and take home. Without those trucks rolling, there’s nothing on the shelves of that Safeway.
Chaos.
If you were watching CNN or Fox News over the weekend, you may be wondering why all of these professional, usually cool-under-fire politicians were on camera clearly shaken, unsure and in my estimation, on a couple of occasions, almost ready to cry. They were staring into the abyss, know that even if they passed a bailout package, there was no guarantee that it would save them from the plunge along with the rest of us.
And it was interesting seeing them so shaken. It is absolutely critical that you realize these people who pretend to serve us in Washington, DC have created a system that almost totally insulates them from the challenges we “unwashed masses” face in our lives. From health care to a retirement system that is completely detached from our Social Security system. Their system is well-funded and not, as ours is, bankrupt. To see these people, who by the way created this crisis, sweating it along with the rest of this, is interesting.
—Update—
Here we go…Down +100 9:34am…
Down 300+ 10:45am…
Posted in Economy, PoliticsTags: Bailout Plan, Congress, Depression, Economy, Recession