RUSH: No sooner did I predict to you yesterday that the Drive-Bys are going to be trying to destroy the economy based on the stock market news, than the AP makes me out to be what I am: a prophet! I know these people like every square inch, folks, of my glorious naked body (shrinking though it is). Right here: ‘The stock market is on a stomach-churning ride, the once high-flying U.S. housing market is sinking deeper into gloom, and credit, the lifeblood of the American economy, is drying up.’ (Gasp!) Oh, they are so excited! They don’t know which to be more excited about, this or Hurricane Howard Dean, which is making a beeline for Jamaica.
You know, credit is not the ‘lifeblood’ of the US economy. This is where these people exhibit total ignorance. The people who make this country work are the lifeblood of the US economy. ‘However, those billions [injected into the system by Bernake at the Fed] have not succeeded in calming investors, who are worried about which big hedge fund or mortgage company will be the next to announce serious problems…. ‘There is just a lot of fear out there,’ said David Wyss, chief economist at Standard & Poor’s in New York. ‘Right now people are so scared that we are losing liquidity even on safe securities.”
”The risks of a recession have risen considerably and they will keep rising with each day that financial markets remain in turmoil,’ said Mark Zandi, chief economist at Moody’s Economy.com.’ What a great name for a place predicting doom and gloom. ‘Rising unemployment would represent another blow to consumer confidence, which is likely to be rattled by the recent troubles on Wall Street.'(Laughing.) This piece has everything I told you it was going to have, and it’ll be in your local paper that you don’t read anymore, because local papers are losing out to the Internet. By the way, unemployment figures: Have you stopped to think of this? How many illegals do we have working? What’s the number, 12 to 20 million? All right. They’re not reported. They’re on the payrolls here illegally, right? Okay. So if they get fired for whatever reason, nobody will ever know. The government won’t know because there’s no record of them being hired in the first place, for some of these jobs. So we could lose… Just as a ballpark figure, it ain’t going to happen, but five million illegals could get laid off and the unemployment rate wouldn’t change because nobody would know it. (interruption) Yeah, you could count ’em at the food pantries, in the soup line. The food pantries!
RUSH: We had all these people on the phone yesterday saying, ‘Hey, this is a buying opportunity.’ That market was down 340 points when my show started. When it was over, the market was flat. It closed down about 15 or 16 points. We got that market back yesterday, folks, and today it’s up over 156. The Fed went in there and they lowered the discount rate one half of a percentage point, which is the interest rate that banks charge each other to shift money around. But it does signal to me, an avid Fed watcher that (interruption). Well, they care, but I think they’re going to lower interest rates when they get to their next meeting in September. It goes to show the power you people in this audience have. I was so thrilled when I saw that 340-point drop erased, and what happened? What happened? The Fed hadn’t done anything by the end of the day yesterday. Well, they put some more cash in the system, but they’ve been doing that for a while and it didn’t make any difference. What made the difference yesterday in wiping out that 340-point plunge was this show. There’s no question about it.