What do we do next?
Well, the House has passed the bailout bill and the DJI, which had been up 300 points earlier today, is now up just 60, and still falling. California can't find anyone to lend it money, which is worth pondering; California's economy is larger than that of France's, yet no lender in the world seems to think it's capable of paying back its debts. Things are about to get really interesting, really fast.
2 years ago
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5 comments:
What do we do next?
Buckle up for a long, costly, bumpy ride.
The problems facing the economy were not built in a day and they will not be undone in a day either. This bailout plan, if it works which is still an open question, will only grease the skids of the credit markets and so aid in a more orderly decline for the markets: but down they will go. If the plan doesn’t work… well, there will be a violent unwinding of the credit bubble.
Either way, the plane is coming in for a rough landing. The only question is how many down draft air pockets we hit on the way to the tarmac.
Retired IB'er
Well now, isn't THAT pessimistic. If you were a real estate agent, IB'er, you'd be run out of town by Slappy the Happy Clown himself!
i agree with the retiree.
cos cobber
You say tuh-mey-toh, I say tuh-mah-toh… but I would like to think I am assessing the landscape with a realistic, not pessimistic, view. At least for today, the markets would appear to agree with me (a down day in the face of $700 billion of taxpayer largesse). Regardless, better to be prepared for the worst and be pleasantly surprised on the upside.
Still, it is times like this that create opportunity (as you correctly keep pointing out) for those that understand what is going on and take advantage of the turmoil (but with their eyes wide open and their judgments driven by reason and not hoping, wishing emotion).
Retired IB’er
So do I
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