Hey Opers. I read your comments and I agree totally on what you are saying is possible. In fact, I think it is becoming quite probable. I think the Wall Street boys would love nothing more than to put a really good scare into America. The DOW down more than 1000 would surely do that. And force Congress' hand and end the partisan bickering. But, I think if it happens its a mother of a buying opportunity. It's still an election year. The FED will do EVERYTHING to ensure market stability. Bush will do everything possible to push the economy forward. And both Houses will do everything they can to get the economy going. I think 4-6 weeks from now the markets will reflect this, and we'll have a huge rally.
The other side of the coin, however, is that if it fails - if the FED is truly FINALLY pushing on a string - it's gonna be bad. I don't think we're there yet, but if we start getting a string of good news and the markets don't rally; well, as Zeev used to say "Head for the Hills".
FWIW, I think we're seeing the beginning of the good news. Look at oil. And the $USD. This is completely lost on everyone. Oil is under $100. That alone is a huge kick in the butt for the US economy. It also makes mortgages a bit easier to pay. Once the spin doctors get off of the headlines, they're gonna be spouting about oil. I am sure of it.
I think the general market is looking at a great buy-in soon. I think Gold is getting there too, but perhaps not quite there yet. A re-test for sure at least.
Oh, one more thought, if this is truly the worst crisis of our generation, why hasn't the FED dropped interest rates? They usually do this at the drop of a hat. And why hasn't anyone asked this question?
I am guessing one of two reasons. First, the altruistic one, the FED really believes the economy is strong and this is only a banking crisis. Or second, the realistic one, is that this bail-out package is simply a quick fix to bail out a bunch of putzes whom are not willing to simply wait out market forces via a bit of re-regulation and bank loans. I am beginning to believe this bailout is a bit of a theft of the American way and is a Rush to Socialism under the guise of a crisis. Anyone that wants to see what's really going on, and how easy it is to fix, just read Newt Gingrich over the past week or so.
Anyway, I rambled. When you don't post much any more, you end up trying to pack too much into one post. LOL.
BTW, it looks like the whole week is clear blue skies up here. Best weather of the whole summer actually.
AI
