Wall Street tumbles as investors dump financials – by Tim Paradis – April 21, 2009.
“Long-present unease about soured loans bubbled over on Monday after Bank of America Corp. said it set aside $13.4 billion to cover lending losses even as it posted earnings that beat expectations. Other big banks have also increased loss provisions in the past two weeks.”
So… Mr. Paradis was mistaken. And, despite this sort of irresponsible poorly-researched reporting, the Dow took a short-term hit (however, it hardly qualified as a tumble under any circumstances), but then finished up 127.83 for the day as evidenced below:
Maybe citizens are wising up. Or, perhaps we can’t be bothered with bad news any longer. It’s Spring after all, and high time to get on with a booming economy. No more shenanigans say we.
A real issue, although not boldly stated (other than here on this Blog) is general sense of unease around whether government officials and executive leadership understand what tools are needed to offer a long-term economic solution. For example, President Barack Obama has never held a real job over the course of his post graduate and professional life (non-profit work, really does not count because the rules, expectations and results are simply different. And, being a lawyer makes it worse because they tend to make up or bend rules to suit their own agenda).
“Separately, The Wall Street Journal reported that banks receiving government bailout money are having a hard time making loans.”
Did Obama specifically charter the banks to deploy federal funds to stimulate the economy through loans? Isn’t this why we are going to take an enormous tax hit later this year?
I have discussed this topicology (I made that word up) on this Blog before. For a recent example, consider my fairly recent post: the unexpected is so predictable. We have sophomoric executive leadership making decisions that come across like shooting from the hip, that make them the whole lot appear like chimpanzees with shot guns. It gets worse when you have by-line crazed goofy reporters Paradis, Crutsinger and Cramer to name only just a few), with questionable credentials, positing ill-conceived comments that rattle generally misinformed investors and citizens.
A crucial lesson I learned as a firman in Colorado was:
“It’s what you don’t know (worse, what you don’t see) that can kill you faster”.
It’s too easy to form a belief or opinion based on a quick read, or what you hear. We need to be informed. But, don’t just take my word for it. Relish any opportunity to question everything and accept nothing. God gives us discernment. It’s a fascinating, vital tool.
Information is not always power. Power must be used for good.
Peace be to my Brothers and Sisters.
Brian Patrick Cork