stock market dow.jpgBetween the weather and recent volatility, the roads out to the Hamptons today are unusually free of traffic. It’s seems lots of people are still at their desks trying to figure out what to do in a market that swings back and fourth hundreds of points in just a few hours.
While the stock market this morning has rallied from it’s initial downward plunge, some traders are worried the rally is too coming too early. “There’s still time for a huge dive,” one nail-biting trader who says he was buying this morning’s dip told us today. “I should have taken the whole day off. Fridays are miserable.”
Others are more confident. “Look, the Fed statement and all the central banks injecting liquidity are changing Mr. Market’s state of mind. People are confident that the powers that be are watching. Cramer can stop screaming. They’re listening,” one small-caps equity trader told us.
But not everyone thinks that recent central bank moves are a good sign. Some are worried that it may be a sign that the central bankers know things are even worse than they seem. “There’s no liquidity problem, as far as I can see. There’s plenty of money out there. This talk of ‘unusual funding requirements’ makes me think the Fed expects a run on the banks,” said yet another source who asks us not to name him.
Others have cited a quite different concern: that promises of additional liquidity to stabilize markets may create unrealistic expectations of moves like an emergency rate-cut. These expectations could inflate asset prices, it is feared, and lead to an even bigger crash when they prove unfounded.
The head of the Ludwig Von Mises Institute thinks that recent events may bolster the prospects of Republican presidential hopeful Ron Paul. “Now we are at the beginning of a worldwide financial crisis, of exactly the sort that Ron Paul has warned about,” Lew Rockwell writes. “Will the Fed and the other central banks be able to delay the inevitable, or will this be a worldwide washout? I fear the latter, and if so, it is Ron Paul’s secret weapon.”
He continues:

In a global economic crisis, who do you want in charge of the White House? One of the crazy commies in the Democratic party, or one of the spendthrift fascists in the Republican party?
Or do you want a sober, learned doctor who knows why we’re sick, and just the cure for us? That is: sound money, balanced budgets, lower taxes, less government.
We are in for a wild ride, thanks to Greenspan, Bernanke, and the rest of the gang, not to speak of much suffering.

Rockwell is obviously an enthusiast for Paul. But even he has to admit that back-testing theory that an economic crisis leads to libertarian politics doesn’t quite work.
“The last time this happened, Americans chose our first fascist president, who took us to welfare, central planning, and war,” Rockwell writes.
Ron Paul’s Secret Weapon []

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Comments (40)

  1. Posted by bipartisan bs | August 10, 2007 at 1:35 PM

    Ron Paul appears BY FAR to be the best candidate (least retarded). Shame he’ll never get elected.

  2. Posted by Paddy McLaughlin | August 10, 2007 at 1:40 PM

    Give me a break. Ron Paul? His policies are actually sound and correct, but you don’t turn an aircraft carrier on a dime. If you don’t listen to us here neck deep in the markets, we aren’t going to fund your campaign and without us you CANNOT WIN.
    I’m so tired of hearing about this guy. Good for him he has principles and is truthful, but not the qualities I want in a President. We need a President keeping track of Wall Street’s pulse, NOT Main Street’s.

  3. Posted by Belinda Lipscomb | August 10, 2007 at 1:43 PM

    I’ll be your freakazoid, c’mon wind me up…..

  4. Posted by Paddy McLaughlin | August 10, 2007 at 1:50 PM

    Mitt Romney will get things turned around. He knows that Wall Street matters much more than Main Street.

  5. Posted by Tyson | August 10, 2007 at 1:59 PM

    Wall Street only matters while Main Street is apathetic and lazy. And Main Street is waking up.

  6. Posted by Tom Joad | August 10, 2007 at 2:04 PM

    I’ll be all around in the dark – I’ll be everywhere. Wherever you can look – wherever there’s a fight, so hungry people can eat, I’ll be there. Wherever there’s a cop beatin’ up a guy, I’ll be there. I’ll be in the way guys yell when they’re mad. I’ll be in the way kids laugh when they’re hungry and they know supper’s ready, and when the people are eatin’ the stuff they raise and livin’ in the houses they build – I’ll be there, too.

  7. Posted by yea ok | August 10, 2007 at 2:05 PM

    yea the main street is waking up my candy ass. Reported 50% of mortgage borrowers in CA overstated income by 50% or more and this to qualify for loans they couldn’t pay off after the teaser rate expired even if they made that overstated income. Yea mainstreet is really waking up.
    The only thing they are waking up to is what they hear on headline news and from all the pundits and talking heads, nothing more.

  8. Posted by Random Banker | August 10, 2007 at 2:05 PM

    Mitt Romney has about as much chance of beating Hillary Clinton as a squirrel taking on a grizzly bear. Politically he’s a novice, obviously he did great things a Bain Capital. By Hillary Clinton has been on a single minded quest to this moment for the last 30 years of her life. She’s literally going to dismantle Romney, who will be the republican nominee.
    P.S. Ron Paul is clearly the best candidate

  9. Posted by chris | August 10, 2007 at 2:09 PM

    Agree with Random Banker. Hilary, as much as I don’t like her, is a force.

  10. Posted by Shecky Lenin | August 10, 2007 at 2:09 PM

    Real estate is the opiate of the capitalistic masses.

  11. Posted by Random Banker | August 10, 2007 at 2:14 PM

    He’s a 1 term governor… he ran in one election…. and he’s a Mormon…offsetting Hillary’s female handicap… i mean this is gonna be ugly.

  12. Posted by JD | August 10, 2007 at 2:19 PM

    FT will probably start running a column titled “How to preserve it” Would it not be a riot to see coupons for Brooks Brothers in Barron’s and WSJ. Ha!

  13. Posted by anon | August 10, 2007 at 2:19 PM

    That Clinton political machine is not to be messed with.

  14. Posted by Bring'em Young | August 10, 2007 at 2:20 PM

    A Mormon movie director wins an “Oscar”.
    When he accepts the award, he says, “I’d like to thank our producers, our cast and crew, my wife, my wife, my wife, my wife……..”

  15. Posted by OpenYourEyes | August 10, 2007 at 2:24 PM

    The patient has refused to call the good doctor even though all who look on him see he is at death’s door. The patient is in denial and the risk is that he will spread his disease around the world.
    The doctor is in. The doctor is Ron Paul. Don’t let the fascists lock him out or the patient will die – and the sicko will take all of you with him.
    If you can’t vote for the good of the country at least vote for Ron Paul to save your own slimy soul. Or has your disease of greed progressed to the point where you’ve forgotten you have one?

  16. Posted by Baller | August 10, 2007 at 2:24 PM

    Isn’t going to Brooks Brothers already kind of a coupon move?

  17. Posted by JD | August 10, 2007 at 2:28 PM

    Ha! Yes indeed.

  18. Posted by Anonymous | August 10, 2007 at 2:40 PM

    wait.. we dont like BB’s anymore?
    i gotta return all these suits now

  19. Posted by Paddy McLaughlin | August 10, 2007 at 2:41 PM

    From a file I saw I think from the PE Weekwire guy (Primack):
    PE Donations through/of (not sure) Q2 2007 to Prez candidates:
    Obama: $70,850 (39 Supporters)
    Romney: $65,875 (41 Supporters)
    Paul: $250 (1 Supporter)
    Yeah, so…enough about Ron Paul already!!!!!!!1

  20. Posted by Chan Yu Biu | August 10, 2007 at 2:49 PM

    Off the rack? How common….

  21. Posted by Bulging Bracket | August 10, 2007 at 2:50 PM

    Bespoke or you’re broke!
    But yeah, BB has been declasse for a while now.

  22. Posted by Fake Ben Bernanke | August 10, 2007 at 2:54 PM

    Liquidity will see us through. Your unnamed source is a douchebag. On a different note, I have it on good authority that Ron Paul wears women’s panties. I could go on, but I need to give some statements to the press before Greenspan does. The old coot is always trying to central banker-cockblock me.

  23. Posted by OpenYourEyes | August 10, 2007 at 2:59 PM

    Paddy, you shameless twit!
    You said:
    “Good for him (Ron Paul) – he has principles and is truthful, but not the qualities I want in a President”
    You apparently value money above truth and principle. Good for you! Anyone with that value system has sold his own integrity a long time ago. Of course you would have sold your low-value integrity for some highly-valued money. So how much was your integrity worth? $1,000,000? $10,000? $250?
    And what’s left of you now, Paddy boy? You’ve got cash on hand but no integrity in the bank. Whoever you’re sleeping with is lying beside a steadily declining and hollow asset bottoming out in a pile of nothing but dust in the wind.
    Time to redeem yourself, Paddy boy!
    Vote Ron Paul and do something right for a change – you’ll feel better about yourself.
    (And lay off the Guinness – it’s affecting your writing)

  24. Posted by Anonymous | August 10, 2007 at 3:02 PM

    what about a good chicago suit shop/ tailor

  25. Posted by Ajax | August 10, 2007 at 3:11 PM

    while we’re at it, let’s follow paul’s advice and return to the gold standard

  26. Posted by John Galt | August 10, 2007 at 3:16 PM

    Who is Ron Paul?

  27. Posted by Anonymous | August 10, 2007 at 3:17 PM


  28. Posted by Daniel | August 10, 2007 at 3:19 PM

    Actually, back-testing the theory does work.
    Roosevelt ran his campaign to be elected the first time as someone who was for a smaller government, wouldn’t micro-manage the economy and so on; later he ran campaigns promising to keep us out of war.
    What he did in office immediately after being elected was a different story, however–some things don’t change.

  29. Posted by Th Indian Chief from the Village People | August 10, 2007 at 3:21 PM

    For the last time, he’s RuPaul’s twin brother.

  30. Posted by Ayn Rand | August 10, 2007 at 3:26 PM
  31. Posted by Anonymous | August 10, 2007 at 3:27 PM

    Actually he is somebody who needs to get shut out of the mainstream media ASAP before he causes a little mini-revolution of angry gun-toting hunter’ish people. Everytime he’s on TV people seem to like him, not good for us.

  32. Posted by Felipe Rose | August 10, 2007 at 3:31 PM

    Oh, that Ron Paul.

  33. Posted by MSM Hack | August 10, 2007 at 4:28 PM

    Carney, I can’t belive you’d post Rockwell’s statements about that Democratic facist Roosevelt’s “facism” unchallenged.
    Rockwell just proves again and again the moral vacuum that is libertianism.
    I think the Japanes Emperor brought the war, which brought some central planning. Oh, reah, and FDR did bring on that welfare program called social security so people could stop working after 65.
    Results: won the war. Out produced the entire world with our “centrally planned” economy, and grandma doesn’t have to eat her cats before she dies.
    For every libertian ass-wipe like Rockwell, read Rawl’s “Theory of Justice” to discover why a rational person chooses an economic system that spreads the wealth.
    Can’t believe I thought all that up on a Friday afternoon.
    And yes, my grandmother voted socialist because FDR was too conservative.

  34. Posted by anon | August 10, 2007 at 4:42 PM

    Yeah Libertarianism is pretty stupid. Doesn’t make much sense … Once you get down to brass tacks it turns out that these fools want to legalize everything from private militaries to selling human infants at supermarkets… clearly an ill-conceived ideology..

  35. Posted by Bulging Bracket | August 10, 2007 at 5:01 PM

    Rawls is just another apologist for mass murder – as is Rockwell, by the way. People like FDR and Hillary caused the great depression with Smoot-Hawley, then blamed the market, conspired with the Nazis to liquidate the Jews (can you say Molotov Ribbentropp?), and then gave nuclear weapons to the Soviets. But they’re patirots. Right
    Libertarianism at home, Imperialism abroad. It worked for the Brits in the 19th century, and only failed thanks to the Left. De-colonialisation killed 1M people in India in 47 alone, but the Brits were evil? right.
    As for Social Security – it’s a crappy Ponzi scheme that wasa originally a tontine. No one under 40 is going to collect a dime from the program, and there’s no reason why anyone should be retired at 70, never mind 65. Warren Buffet is working in his 80s, while Sumner is dead and still working. Get over your mass murdering socialism and get with the real world.

  36. Posted by John Galt | August 10, 2007 at 5:09 PM

    Yeah obviously freedom and the Constitution are ill-concieved and don’t make much sense.
    Hell I like high taxes, because it’s so mind-boggling and time-consuming to go shop and find ways to spend money.
    Let’s have the government own everything. I want going to the emergency room and ordering HBO to be as time-consuming and paiinful as going to the DMV. I won’t have much to do anyways when Big Brother forces me to only work 30 hours a week.
    Let the Collective decide what’s moral and immoral, because I’m dumb and can’t decide for myself “right and wrong” and what “I like and don’t like.”

  37. Posted by Anonymous | August 10, 2007 at 7:51 PM

    “I strongly support Ron Paul. We very badly need to have more representatives who understand in a principled way the importance of property rights and freedom.” — Milton Freedman
    Good luck Rep. Paul!

  38. Posted by OpenYourEyes | August 10, 2007 at 8:09 PM

    THE BUSH, THE BORG AND YOU (or what was you)
    Instead of voting for Ron Paul why not just give in and fully join The Borg?
    Being an individual with rights you constantly have to defend is just too hard.
    Leave your mind behind and join the mass medium message of assimilation.
    Bush is right. Let’s all be on one side. We are good; they are evil. It’s so simple it must be true. And anyway, just face it, resistance IS futile.

  39. Posted by um | August 10, 2007 at 10:10 PM

    hey msm hack wtf is libertiasm? You mean libertarianism? The wide general belief in policies that actually make fucking sense? That one?

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