The problem is that credit was allowed by a U.S. Government ruled by Democrats and Republicans to grow unregulated. But worse than that they allowed the creation of financial instruments that no one knows the value of, causing a balance sheet valuation problem.

Credit can’t expand forever and once it started to contract everything began growing in reverse, destructively. The lack of credit regulation made it far worse due to leverage. But even worse than that is that no one trusts the balance sheets of any of these companies. Who knows if they will be around tomorrow? So who would lend them money? How can these companies recover even with government help?

I think the most the government can do is slow the fall at a huge price which includes foreign aide giveaways, meaningless wars, and heavy pork. Thanks Democrats and Republicans for completely ignoring history and I know we will re-elect you! We trust you!

President Bush’s comments about the strength of the U.S. economy as the financial meltdown has unfolded:

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“The American people are concerned about the situation in our financial markets and our economy. And I share their concerns.” – Sept. 18.

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“In the long run, Americans have good reason to be confident in our economic strength.” – Sept. 19.

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“In the long run, we’re going to be fine. You know, we’re an innovative economy: We got smart, capable people; our workers are great; small business sector is thriving and vibrant; we’re productive people. And we’ll get through this.” – Sept. 20.

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“Our economy is facing a moment of great challenge, but we’ve overcome tough challenges before, and we will overcome this one.” Sept. 24.

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“And I’m confident that in the long run, America will overcome these challenges and remain the most dynamic and productive economy in the world.” – Sept. 29.

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“It’s going to take a while to restore confidence in the financial system. But one thing people can be certain of is that the bill I signed is a big step toward solving this problem.” – Oct. 6.

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“This is an anxious time, but the American people can be confident in our economic future.” – Oct. 10.

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“It will take time for our efforts to have their full impact, but the American people can have confidence about our long-term economic future.” – Oct. 14.

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“In the long run, the American people have – can have confidence that this economy will recover.” – Oct. 17.

BUSH(jr): OK KIDDIES I LIED, who wants me to read another Elementary Book?

“The drop is unprecedented,” Lundberg said in an interview. “It was dictated by the crash in crude oil prices and deepened powerfully by falling U.S. gasoline demand.”

Oil settled down nearly $4 a barrel on Friday on broader worries about a global economic recession, despite an agreement by the Organization of the Petroleum Exporting Countries to cut output.
http://www.youtube.com/watch?v=ZzPZ-zKfld0

http://www.youtube.com/watch?v=kUS51UDX9ks
We can all go home…

http://www.youtube.com/watch?v=kUS51UDX9ks

http://www.youtube.com/watch?v=kUS51UDX9ks