Pelosi’s method of bail out a sinking ship is by Bush wacking.

The unexpected happened today the 700 billion dollar bailout plan failed in the House. The main reason it failed is Speaker Nancy Pelosi’s big mouth. She knew they had a close vote in the House but she just could not resist the temptation to use the biggest financial crises in modern times to rail in front of the whole House against the Bush administration and the Republicans just before the all important vote. Thus she lost the vote from some republicans. Leaders should know when to speak and when to keep their mouths shut but not Nancy “I am trying to save the world” Pelosi. She is not even in control of herself.

So a bill that would have brought us on a path to state socialism failed today but you can be certain they will try to bring it back by the end of the week. Now we will probably see a huge sell off in the markets and that will be all that it takes to get the votes. Nevertheless, in the next few days firms are going to fail and many are likely to lose entire fortunes.

A rescue of some sort is probably necessary or the whole world will go into a great depression very quickly but I will tell you why I think any short delay is good.

Everything has been way overvalued for quite some time now. The Stock Market is still almost double where it should be. People say we lost over a trillion dollars in the stock market today and while that is true on paper the wealth really was never there to start with. Overvalued paper is not wealth. So yeah, the government could have propped up the overvalued paper for awhile but that is only a short term fix. The only real fix is to let the overvalued paper go to the value it is really worth. Sure, that will take away over half of peoples retirement savings etc. but I am telling you much of your wealth was an illusion to start with, you never really had it. You cannot get double digit returns for decades when the economy is going nowhere and not expect a crash to come eventually.

A nation cannot keep spending much more than they have anymore than you can. Lets face it Ron Paul was right on our economic situation. The wealth they claimed was there was never there. It was a con game and a pyramid scheme that they they used to gamble with. So the more things drop to the real value of all that paper we are holding before the government steps in the sooner we can return to anything close to fiscal sanity. A prop up by the government at artificially high levels will only work until the next financial shock. This crises will not be over even with a massive bailout.

It is not all about the United States either. Global markets are also in panic and not just because of what is happening in the United States. Britain is entering a housing crises similar to ours and Spain’s housing and debt situation is even worse. Inflation is high in most countries of the world and a world recession is almost a certainty. That will bring rapidly falling oil prices and the oil rich nations that were buying debt will get very tight very quickly. That means interest rates will soar to service our debt before long and that is another crises coming for us. Russia’s economy is based almost entirely on energy exports and Europe is dependent on Russia’s energy so what blackmail will they try to pull on Europe this winter?

In any case, welcomed to the worst economic collapse of our time and it really does not matter much in the long term what our government does to try to shore up the dike. It can be a slow collapse or a fast collapse but things here are going to collapse much like in the old Soviet Union. And that’s probably the good news. Stay tuned for the bad news.

I just read two articles today Sept 30th by Jimmy De Young and Garry Kah that make a lot of sense and add to what I said here yesterday. De Young points out that many bankers are Jewish and this could bring Jewish persecution. I basically said the same thing on a comment on another blog because guess who economic losers always blame in the final analysis?

Garry Kah’s article makes several good points about our banking crises and where it might lead and I agree with most of his points. He also said the world finnancal crises is likely to help bring persecution to the Jews they have a history of becoming the scapegoats. You can read Kah’s excellent insights here wall street in crises.

Here is also another link that fully explains why the confused free marketer’s are really bringing about its own distruction by embracing the ideas of Marxism.