Friday, October 3, 2008
A Day Late & a Dollar Short
It seems as though Congress has the in-ability to to anything right, even when they do it mostly right. Because of partisanship, they frittered away the time, which was a key time to approve the bail out plan. Then they weakened it to the point that the plan lost the desired effect.
On Monday, when they failed to approve the plan that was on the table, the Dow Jones fell 777 points. Today, when they approved the Senate version the market fell another 150 points. Financial institutions lost confidence and credit actually tightened, (the reverse effect that congress was looking for). The package was also weakened. They are babbling, bungling, idiots, and.... a day late and a dollar short!
Speaking of a day late and a dollar short, did you see what happened to CitiGroup's deal with Wachovia? Well, Wachovia announced this morning that they struck a deal to merge with Wells Fargo for $15 billion. CitiGroup's stock fell over $4.00 per share. A breach of contract by Wachovia? Yes! But a worthless contract. A few lawyers at CitiGroup should be looking for work tomorrow.