Today the Dow had its biggest single-day drop. Or did it? Yes, if you look at the 777 point drop. But it’s percentage that matters, and we’re talking about 7%. Now that is still bad, but I learned this stuff in 6th grade when I read How to Lie with Statistics. Didn’t anyone else? In terms of percentage drop, this is in the top 20.
I don’t know the details of the bill that failed today, but it seems pretty clear that it didn’t pass because of the outcry from constituents complaining that that government is bailing out the fat cats. People, people. This is why we have a republic, not a direct democracy: because folks who don’t understand economics should not determine economic policy. And I’m no economic expert, I’m just going off the one year of economics I took in college. But I do know this: if money stops moving, we are all in deep, deep doo-doo.
“Don’t bail out Wall Street,” you cry. Well, today’s sharp drop is a shot across the bow: If you don’t let your representatives vote yes, you will get your wish and the system will self-correct. And once you’ve lost your job, and entires companies have gone under, maybe you’ll ask yourself if it was worth it.