Rule Number One. The Dow can hit zero (and, if you haven't written any naked calls, it'll definitely stop there).
The Dow didn't actually hit zero today. But it sure looked like it was trying.
The bailout failed. Even my dingbat Republican Representative voted against it.
But here's whats important.
This is Reaganomics, in it's most grotesque form, coming home to roost. Reaganomics, aka "Voodoo Economics", turned the financing of our nation on it's head. Reagan railed against taxes, and especially railed against the Democrats who raised them.
What he proposed (and got) instead, was debt. Rather than taxing us to finance the government and to buy swell stuff from foreigners (like oil) he, instead, foisted off the bill to future generations.
Rather than being a Tax and Spend Democrat, he became a Borrow and Spend Republican. His cavalier disregard for future generations was sloughed off as "don't worry -- we'll be wealthy" and by freakishly Pollyanaish thinking on his part.
After him, rather than raise taxes, the Republicans kept cutting them -- and raising the debt ceiling to pay for all the shit we actually needed -- like an Army and a Navy and an Air Force and oil. Not to mention some piddling-assed social welfare programs which they blamed for everything and then slashed the f*ck out of.
Nobody has envisioned and carried out Ronnie Raygun's dream of a debt-ridden tomorrow (and tax-free today!) better than our current president, George W. SilverSpoonissoontobesentpackingbacktoTexas-ThankYewJeebus.
I think that Ronnie was kind of hoping that we'd all be dead by the time the bills came due.
Which just goes to show you -- never trust an out of work actor (or writer, or a faux Good 'Ol Boy who never worked a day in his life) -- especially when it comes time to pay the bills.