Bailout Passes, Stock Market Drops (and other myths debunked)
The good news is that Congress is going on recess – and 90% of stock market gains occur when Congress is out of session.
The other big myth (or big lie) used to support he bailout was that the bailout was needed because all lending has stopped. Yet Alan Reynolds of the Cato Institute writes that “bank loans have not dried up“, with data to show for it. Note: his chart goes only through 9/17, but the data for 9/24 is up now, and indicates even more growth in lending – before the bailout passed but after Paulson claimed we were headed into a depression.
Finally in bailout related news, a lot of people have been talking about Bill O’Reilly going ballistic on Barney Frank for his role in the crisis and his support of Fannie Mae and Freddie Mack while they were crumbling. I just thought I’d pile on Frank, since he blames the free market, rather than the government/himself.
- Heritage: When Congress Fails
- Townhall: Barney Frank’s Conflict of Interest
- WSJ: What They Said about Fran and Fred
- NY Times from 2003: Frank defends Frannie and Freddie from reform
- Barney Frank: Casting Stones from a Glass House
- Business and Media Institute: Media Mum on Barney Frank’s Fannie Mae Love Connection
- Open Secrets: Fannie Mae and Freddie Mac Invest in Democrats