Stock Market Down - Dollar UP
The stock market took a huge hit yesterday and lots of people are screaming about it but they dollar is up almost 6 cents against the Euro since Sunday evening. That's a significant jump.
A stronger dollar is much better for this country than a falling stock market.
Oil fell on news of the bailout failure but has rebounded a bit.
We need to just let it be and not force a bailout through Congress. We'll endure the pain and recover. Not only will we recover faster, the rest of the world will too.
The Fed might be eying a rate cut to get things going. That will drop the dollar unfortunately. I know it's tough when business can't get credit lines to stay to stay afloat but we rely on credit too much as it is which is why we have a negative saving rate in this country.
Doing nothing will also cool demand for oil even further for a while as we enter in to a short term recession which will drive oil prices down even lower during the tough times to come.
The least harm Congress can do now is nothing. Let's just hope Bush doesn't declare a national emergency and sign an executive order and force the bailout over the objections of Congress.