Apple Stock Tanks and Bailout Fails
September 29, 2008
I should have sold at 200. Apple stock today plummeted 23 points to a year-low amount per share of 105.26. The reason it dropped so dramatically can be attributed to terrible timing. Morgan Stanley analyst Katy Huberty and RBC analyst Mike Abramsky both downgraded to equal-weight from overweight, leading Apple’s stock to take a dive. However, to make matters worse, Wall Street dropped 777 points on the news that the bailout plan proposed was voted against.
I’m gonna take a break from Apple to address an issue I find extremely important. I believe the parties are slowly dividing America. Lawmakers are voting for the opinion of their party rather than their true beliefs. Today we saw this in full effect. Democrats voted against the bailout today, not necessarily because they didn’t agree with it, but because it was proposed by George Bush. They figured that because George Bush has made mistakes in the past, he has no chance of doing anything right, and subsequently voted no to the bailout that could’ve helped a ton of people. Case in point: read this comment from AOL.
“IF BUSH WANTED IT TO PASS, I AM AS HAPPY AS HELL IT FAILED.”
No thought as to what he was proposing, no consideration that perhaps the man America elected two terms in a row might do one thing right, simply a rejection of his proposal based on the current public perception that Bush is a complete, and utter, failure in every aspect of life. I feel sorry for Bush right now: no matter how much he wants to help the country at this point, I don’t think he can. I think he has reached a point, no thanks to the media, in which America will immediately disagree with whatever he says, without even considering what he proposes. I want to make it clear to everyone that I am not a Republican, or a Democrat. I am not pro-Bush or anti-Bush. I don’t believe decisions should be made based on pre-conceived notions regarding a party or person: every politician wants to help the country as much as the other. Bush is not a complete idiot: he may not be a good public speaker, but just because he has a Texas accent doesn’t mean he’s a dumb cowboy. Think back to things Bush has done right: think of the surge, the immediate reaction to 9/11. Yes, he’s made some mistakes, but he’s only human. Yes, he’s misspoken, but you can’t be prefect grammatically all the time. I find it extremely unfortunate that the bailout got rejected, because it shows that politicians no longer pass laws based on what is right for the country: they pass laws based on what is popular, based on their party’s opinions, based on not voting with the other party’s members. As a result of this, we saw today a bad sign of things to come. Unless Washington gets their act together, this may very well be the beginning of the end.
I apologize for the political rant, but I think it needs to be said.
here in Europe we see it actually something as a return of communist-economy methods, but worse. why? this way of ruling economy was very official in ex-communist states. economy makes losses, banks make losses, we take money from tax-payer. that’s the way how communist states funcioned. but what does Bush make? he wants to take the money from the taxpayer, and give it to the rich-to the banks, not to the people who lost their houses and properties, just because greedy banks gave them credits on no basis.
this is funny and not possible in Europe, where everybody has medical/social insurance. maybe it’s time for America to think a little bit over itself…because such thing didn’t happen to Europe, which is always pointed at as having s weaker economy, and less productivity. if you give all the power to greedy private busineess, at the end that’s what you will get. someone has to write some rules for business, because human society is made of something more than only a profit.
Marek: agreed.
mykbibby: I admire your balanced stance, but the animosity against Bush isn’t because he may or may not be stupid, or have made mistakes. I don’t think anyone believes he’s been running the show all this time; his old billionaire friends aren’t dumb enough to let that happen. And sickeningly, they saw the financial crisis as another way to divert taxpayers’ money to their friends on Wall St. It’s sick, and sadly so in America. The silver lining here is that something may change to redress the balance. You have a rare opportunity to make that happen.
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Uhhhhh, it was the House Republicans who failed the bailout, not the Dems. Check the vote.
Wow… that makes things even worse.
George Bush is not a dumb cowboy. Cowboys are much smarter than George Bush. George Bush has been a complete and utter failure, except for African AIDS patients. He has made so many mistakes that they must be deliberate. Probability dictates that he should be right some of the time. Most people feel, with good reason, that if George Bush recommends it, he has not analyzed the situation accurately, completely or honestly. I believe that he may even be a traitor, like his Nazi-sympathizer grandfather. He has singlehandedly destroyed the Republican Party. Okay, that’s not true; he had a lot of help.
My vote goes towards keeping these posts Apple rumor and analysis related. Of course, you have every right to publish anything you desire, but I don’t come here, or roughly drafted (as an example), for political analysis. You run the risk of alienating a certain part of your readership with something that has little to do with Apple.
The sky isn’t falling, the economy will be alright, and so will Apple. In 2009 Apple will continue to make inroads into the PC homeland. Nothing will change.
To add, I did agree with some of your insights in the post. Sorry to sound as if I was criticizing you!