Market really is in the s*&^bag to say the least. I have to say, this market and the economy is so screwed it's like a sick joke. I listen day after day to the Fed, and the pundits on CNBC and it's really scary. They actually believe that the Fed is going to save the universe! They actually believe that the Fed should bail the whole entire country out! People made bad investments. Last I looked you make a bad investment, you lose on it, you have to suck it up and move on and try to make a better investment next time! Do we live in a land of whiners? My kids know there are consequences to every action. I've made a TON of bad investments that lost a boatload of money. I threw away crazy amount of money making a movie a few years ago (will finally be in your local Blockbuster in June! Called Crazy for Love) it sucked losing so much money and I sure can use it now, but its gone, I have to move on, I got no choice, baby. The Fed needs to stop treating the public like they are stupid children. If the Fed is bailing out homeowners, they should bail me out of my movie. Wny not? WHere do you draw the line? Besides, even if a case could be made as to why the Fed should do one of the dumbest ideas ever thrown out there, where is the money coming from? There is no difference doing this and just wiping the value of the US Dollar down to zero. That's where we are headed, folks. Sorry, its 1:29 am and I don't have time to put on the kids gloves. If the Fed (when) bail out homeowners they will be making the single biggest mistake in the history of the US Economy. We will 100% be headed into a DEPRESSION that is likely to last for MANY years. They will be dooming our country to the worst economic crisis we have ever known, and they will render our currency worthless. They may very well bankrupt the entire country. Bernanke has ZERO clue about what he is doing. I've said it here before, I'm considered fairly liberal in my views, but I am not blind to fiscal responsibility. You can not keep printing money and throwing it into a wishing well.
The fiscal stimulus. Let me ask anyone reading this. What the freak are you going to do with your $600? Seriously, that is one of the dumbest ideas yet. Yes, everyone gets $600 an that's going to make everything right!!
What the Fed never realizes is that in putting bandaids on economic crisis' they make it WORSE. They delay the inevitable. It was the same with the internet bubble. This is the perfect storm. An election year so no party wants to be responsible and say "we're screwed for the next 3 or 4 years, but we will be ok after that more than likely". That would be responsible and honest. Instead we get these stupid ideas that gain traction because they are all posing for their constituency and all they do is set us way back more and more.
At LEAST one of the major banks is going to go under. I believe Citibank has a very high probability of going under this year. I think Washington Mutual is shot. I think Freddy Mac and Fanny Mae are JOKE stocks. I think there is going to be serious carnage before its all said and done and its unfortunte because what would be responsible would not make people happy, but it would be the best thing possible. Wash the system out, let the real estate market collapse for a while. It'll generate jobs because it'll stimulate growth at the bottom. Instead, we're just compounding the problems and speeding up a very very bad situation, making it much worse.
I hope I am wrong, but I rarely am when it comes to this type of thing. near term I still thnk we can get one more push higher. I am hoping we get to 13,000 - 13,5000 to reset some serious shorts. In the meantime, we'll let the nutty investors get giddy everytime the Fed does something that amounts to nothing more than a bandaid. People will rush out and buy the market thinking that the bottom is in.
When is anyone going to get that as long as people ask the question "is this the bottom" then it's NOT.
I will say I'm not as bullish as I was to start the week. We have made huge lately. My account has more than tripled as of today from 3 weeks ago! that's SICK! I'm good, but thats just sick good, even for me!
Let's play this market here loose, meaning ride the waves. When the market is ready to tank I think we should catch it. The chopiness needs to be feared, its hard to trade a sideways market. We like TRENDS, they are our friends!
P.S. I know I"m gruff here, but I tell it like it is, or at least like i see it. That's all I know how to do! RULE!