Oahu Home Sales

Where do we go from here?

I did not expect it, nor did the financial markets. Not when the $700 billion bailout package had the support of the Democratic and Republican leadership teams. But obviously, there were enough disgruntled members in the House (and angry Amercians contacting their congressmen about the unbelievable price tag of this mess) to scuttle the bailout bill as it failed to pass today. Republicans failed to back their President and voted 2-1 against the bill. Democratic leadership took verbal shots at the present administration rather than leading the cause. The impact on global financial markets was immediate. The Dow Jones fell 777 points, the largest drop ever in a single day. The question now is where to from here. I suspect a bailout package (though revised) will still go through at some stage but will require more horse trading from the dissenters and likely a few other failures along gtghe way. I would think it is too important to just toss away now. However, the longer it takes, the more carnage we’ll see in the markets as the liquidity squeeze continues to chock financial institutions globally. For the time being, policy makers will need to rely on other tools to help stabilize markets. Central banks continue to inject liquidity into the system, but these are only temporary stop-gap measures. Markets will remain turbulent as US lawmakers continue to haggle. What a fine mess we have managed to get ourselves into……I pray for my childrens’ future…….I am instructing my buyer clients to stand asisde until the markets stabilize…….because we just might be on the verge of a national economic depression. Let’s pray our government leaders can work together and solve this national/global crisis soon.

This entry was posted on Monday, September 29th, 2008 at 11:44 pm and is filed under For Buyers, For Sellers, Market Watch, Updates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.