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September 29th, 2008
04:39 PM ET

This is not Armageddon, and this, too, shall pass

Fear swept across the financial markets Monday after the government's financial bailout package failed the House.

Fear swept across the financial markets Monday after the government's financial bailout package failed the House.

Ali Velshi | BIO
CNN Senior Business Correspondent

Despite what will likely be the biggest point loss this year, and the biggest point drop in history, markets are not the big deal here. This is about the credit markets, which are seriously frozen, imperiling the ability of companies to raise short-term cash to pay their bills.

You can’t see this happening in real time in a box on the corner of your screen. We have very clear indications of it, both anecdotally, and through the measure of dreary markets and LIBOR. But we’ll really only know about it when it’s too late – when companies cant make payroll or close down shifts at plants.

This underscores a fundamental lack of understanding of financial markets in Congress.

This is not Armageddon, and this, too, shall pass. But because of the failure in Washington today, more people will lose their homes, more businesses will fail, and more people will lose their jobs.


Filed under: 360° Radar • Ali Velshi • Bailout Turmoil • Economy
soundoff (60 Responses)
  1. Bill

    Ali, you are very passionate about what you believe. However I believe you need to expand your knowledge more in the bigger picture (bigger then the credit markets even that you are trying so hard to protect). Watch the Video called "Money As Debt" – Search for it on Google. See where the real power and what is really going on with this power grab.

    I also believe you should read up more on the Austrian School of Economics. Lastly, talk to some of the near 200 economists from top Universities who disagreed with this bill.

    September 30, 2008 at 12:24 am |
  2. Bill Z.

    The only thing that is guaranteed if this bailout passes is that wall street's elite can buy another boat at the expense of our children's future generation. We will rise and fall with the rest of NAFTA.
    At least we'll have company. If you haven't seen the writing on the wall, either get out of the stock market on the next up day, or plan to stay put for a long time. All the bailout will accomplish is postponing the inevitable.

    September 30, 2008 at 12:09 am |
  3. Jim

    Warnings were given but noone gave heed – now see the results of all of the greed.

    September 29, 2008 at 11:22 pm |
  4. Joanna

    My husband and I are very middle class- we are “County Road”, not Main Street… We have followed Dave Ramsey’s plan and paid off our debt, created an emergency fund, and we have no car payment or credit card balance. I am now a stay-at-home mom, and my husband’s job is… let’s just say very secure. Our credit score is well over 800, and We have 20+ years before retirement. I don’t care about my credit limit on a single card that sits in my drawer. Tell me exactly how this “bailout” is going to make our particular situation better?

    September 29, 2008 at 10:11 pm |
  5. Adam, Pawtucket, RI

    This bailout bill should not be passed. It is not right for this government to use the money of its people to take care of business owners that act unethically and cause the collapse that is currently happening. These CEO's should be held responsible and use their own personal wealth to bail themselves out, just like we, the American people, have to when we get behind on bills and are low on funds. Where is the direct help for the American people? We are all struggling, especially the low income individuals, but no one is talking about our struggle or any help for us. What a backwards nation we live in, where the rich keep the money and the poor suffer!

    September 29, 2008 at 10:10 pm |
  6. George

    Ali,
    Yes, this too shall pass, but so will America's legacy to future generations.

    September 29, 2008 at 10:01 pm |
  7. Des Moines

    I'm planning on voting all of them out of office this November and let them join the unemployed who are struggling. I'm tired of all their political games and finger pointing. They are all a bunch of clueless Idoits!

    September 29, 2008 at 10:01 pm |
  8. betty

    The real reason this country is experiencing this emergency credit crunch is because China is refusing to lend us any money.That's why it came up all of a sudden. They are afraid that all the mortgage backed securities they bought are bogus. Add this to the insurmontable debt we owe them for this war. They aren't taking on our bad debt or credit. Why arn't the US news agencies reporting this? The American people are fools to think we could have went to war without any personal sacrifice. We're paying for it now, and we are paying for the corporate greed that ran rampant under deregulation and Reagan's trickle down economic policy (aka Bush economic policy.) It's the perfect storm. Unfortunately it's the middle class that is going to suffer the most.The rich always escape and the poor – well poor is poor. Thank the Republicans for this fiasco. Vote change. Vote Democratic all the way!

    September 29, 2008 at 8:58 pm |
  9. Max Smith

    I believe the media is hyping this up way too much. I work for a regional community bank with no exposure to the Subprime loans or exotic Wall Street products and we are doing business as usual. We are not pulling any lines of credit or curtailing lending to our bread and butter borrowers. Lets keep the faith in Capitalism and let Wall Street evolve by letting those who took disproportinate risk fail.

    September 29, 2008 at 8:47 pm |
  10. kim

    I am not interested in socialism, so I am very leary of Obamanomics. I am also not interested in a total free for all, so I am leary of McCanomics. I believe in checks and balances which neither candidate seems to grasp or wants to talk about. Instead they mention extremes instead of common sense. What's really bad is my darkside wants to vote for McCain just because all the vile evil sayers on the left who can't even complete a sentence without being hateful. I feel sorry, for you all and you know who you are because hate is what drives you. I 'm from Colorado born and raised on the West Slope where all the oil shale and gas is. I have been wondering since the mid 1990's where all this money was coming from to buy and build these huge homes destroying our beautiful landscape – we used to think it was old money from Californians retiring here, now I see it was funny money from unscrupulus lenders.

    September 29, 2008 at 8:44 pm |
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