Oct 7th has come and gone, but the Crisis still Looms

I'm very thankful that, so far, the prognosticators of an Oct 7th calamity have been wrong. Other than a really dicey global financial market, nothing untoward happened at 7:10 UTC on Oct 7th as predicted.

So much for the cry of Chicken Little.

But I don't think we're out of the woods yet. While there hasn't been the much feared run on the banks, I don't advise putting your money back into the bank just yet. There's still tremendous turmoil in the market and despite the unprecedented efforts by the Fed and Treasury, the clogged up flow of capital hasn't been released yet. I'm certainly not trying to be gloom and doom here, but the world's markets are walking a very narrow tightrope and just about any unexpected news or another bank or major financial institution failure could start a domino effect that would turn very nasty. So, keep your money safe for a few more days, maybe as one person said, until the end of the month. You certainly won't be missing out on much interest and the peace of mind is worth ten times that much.


While I philosophically oppose the interventions being made into the free market the last few weeks by the Treasury and the Fed, I have to admit that they've done some pretty amazing scrambling. Without their interventions, we'd be in a whole lot worse situation. So, let's just hope that between the world's Central Banks there is enough wisdom and understanding of the immensely complicated and interwoven financial markets to make some wise and timely decisions. Unfortunately, this is one of those times when our very way of life really does depend upon it.


And don't even get me started on how important it is to elect McCain and Palin in 29 days! I hate to imagine the mess we'll be in if Obama, Pelosi and Reid have complete power in Washington!!