While a lot of people are scratching their heads about what went on today with Wall Street’s plunge, it’s easy to map out. It’s the beancounters at it again. Beancounters are an odd branch species of homo sapiens, they are paid to be conservative and think in worst case scenarios, they are paid to think 18-36 months out, and keep the company on course financially in a journey that’s chunked up in three month segments called quarters.
So what is that strange species up too? This is the first working week of the fourth quarter, and most large corporations across America have their beancounters diligently at work putting the final tweaks to the companie’s 2009 budgets. The credit crunch? Most companies have already prepped and planned for that, and that was the discussion two quarters ago to present. If that’s the case, what could cause such a jagged off-the-cliff stutter in the market like we saw today?
Short selling opening up is definitely part of it, but that’s not all of it.
With Obama leading in the polls, every company in the US now has to factor in the effects of the Obama tax increase into their budgets for the next two years, and the beancounters have to do it because they plan for the worst. The Tax increase won’t happen in first quarter, but by third quarter if he’s elected the tax increase will be there.
We must fix or rollback the securitization provisions of the Community Reinvestment Act or we will simply be back here in ten or fifteen years wailing about another near Trillion dollar bailout. This must stop, neither housing nor credit is a right, and neither banks nor Government Sponsored Agencies like Fannie and Freddie should be required by congress to carry ridicoulously large percentages of SUBPRIME loans. They are called subprime for a reason.
Any candidate for any office who does not make reform of draconian CRA requirements on Fannie and Freddie and banking in general part of their platform should be receiving letters now, and I am including McCain in that.
ACORN, who bills themselves as “Non Partisan” is under investigation in up to ten states for possible voter fraud. The authorities are finding things like the Dallas Cheerleaders lineup signed up to vote in states they don’t reside in, and Acorn is pumping tens of thousands of voter registrations into key toss up states. Many of those registrations are bogus and fraudulent.
Now we discover that the Obama Campaign is paying an Acorn group directly for get out the vote efforts, and that they neglected to list that service in their filing. Video from Fox News: