Senator Schumer Interview On Financial Crisis

Many sectors of noncredit related stocks have already given back 50% of their gains from the open today. In other words, as I wrote early today, I am very dubious of this upward move as being short covering that is going to leave a pricing vacuum in its wake. I wrote a few months ago that I expected our next downside to be 1100-1150 on the S&P and that we are right at a trendline going back to the Great Depression so we should expect tremendous volatility here. But, I see no sign of any bottom in my work. That may come but we are just two days removed from the largest panic markets have seen since the Great Depression.

Listen to Schumer's description of where the financial markets were just 48 hours ago re my remarks of a few days ago that there was a real potential for a disaster. We really were on the precipice.

When Schumer states that Paulson said we couldn't wait because setting up a program that Schumer originally recommended would require too much time, I see a ramrod job at work. If the Feds could inject $85 billion into AIG within twenty four hours, there is enough time to announce a plan similar to Schumer's and shotgun the first few moves if necessary. I talked to Schumer's staff today and expressed that same perspective. I'm not against assistance as opposed to complete chaos. I'm against a potential con job shoved down the American people's throat. Any plan should first and foremost protect the people of this country. You remember us. We, not you, run this country.

Click on the graphic to be taken to the video.