First good news have come after a long time of disappointments. Bank of America, Citigroup and Chase have been profitable since the beginning of the year, and their stocks have risen by 86%, 62% and 45.6% respectively over the last four days. It looks as if Ben Bernanke was right when he said that the economic recession might end this year.
Regardless of whether or not his words were actually a speculation, they are working (speculation is not always used in its negative sense – it has a positive one as well). The financial market is showing that. Whenever I have listnened to the radio or have watched the news after he said that, I haven’t heard any bad news there whatsoever.
Of course, let’s not forget that those three banks have been most highly bailed out. The bailouts undoubtedly played the greatest role in the comeback but without the help of speculations they probably wouldn’t be as effective as they look now.
Another bad news for some though
Yes, while things are starting to get better, the Republicans are probably going crazy. The American right has been saying, and still keeps saying, that no bailouts should take place and that that’s socialism/communism/planning economy and therefore is devastating.
We will lose on legislation. But we will win the message war every day, and every week, until November 2010,” said Rep. Patrick McHenry, R-N.C., an outspoken conservative who has participated on the GOP message teams. “Our goal is to bring down approval numbers for [Speaker Nancy] Pelosi and for House Democrats. That will take repetition. This is a marathon, not a sprint.
Those words were said by Rep. Patrick McHenry, a North Carolina Republican from the state’s 10th district and one of the key players in helping craft the GOP message. Like Keith Olbermann hinted, whatever the Republicans do or say from now on can be interpreted as destructive instead of constructive.
With their popularity having fallen significantly, the Republicans are desperately trying to make a comeback, and in politics after a ruling party becomes opposition it opposes the new ruling party’s decisions on the issues so that it is seen as an alternative and/or distinguished from the new administration. Otherwise it risks being in the ruling party’s shadow (which is equal to unpopularity) throughout the latter’s term.
However, during hard time such as the today’s one I believe that there’s no place for politicking.