Tuesday, September 30, 2008

We Have Nothing to Fear but Fearmongering

Here are a couple of examples of the bullyish fearmongering on the part of the powers that be: Yesterday, their servants in main stream media repeatedly said that the no vote on the bailout plan caused "us" to lose a trillion dollars on the stock market. First, no one lost anything except for those who were foolish enough to sell out after the market had plunged. Second, any fool knows that "loss" will be made up eventually -- in the very, very worst case scenario, it will be regained when the fundamentals justify the old, inflated prices. As I write, at eleven the next morning, the Dow has already made up almost half of yesterday's "loss."

Another example: they repeatedly said that yesterday's price tumble was "the largest point drop in the Dow in history." Obviously, the number of points in the drop is meaningless, since the total number of points in the Dow keeps growing. What we want to know is: What was the percentage loss in the Dow? Whenever they reported that, they said it was the biggest drop in seven years.

Forever, versus seven years. That's quite a difference isn't it?

I say we have nothing to fear as much as their fearmongering. -- Especially because it makes it more likely that Congress will enact the wrong sort of repair package.

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