Biotech Values

[microcapfun]

>>It is not clear to me, and possibly to Soros, that this Bernake intervention will solve the problem rather than simply postpone the inevitable...<<

In my mind the real concern is that housing prices will go down another 25% and instead of a couple million families walking away from their underwater mortgages, it will be 10 times as many. (Obviously I am picking these numbers out of my a__.) The banks holding the mortgages, whether sliced and diced or not, will fail. And then we suffer through another ~10 year depression like the one 70-80 years ago.

If, on the other hand, government actions that may make free-market adherents grit their teeth manage to keep most of those 25 million families in their homes, we might see an economic recovery later this year.


>>Looking forward, I really can not see the markets recovering decisively any time soon because we are in a recession as well as heading towards inflation...<<

Let's treat the more immediate needs of the patient right now. The slowing economy may well take care of the budding inflation. If any case, it is a given that interest rates will go back up after the economy recovers.

micro