WATERFALL DECLINE:Afternoon UPDATE: This is what we call a capitulation day in the markets. It may not be quite over, but it's getting close to a bottom. When fear gets so high that everybody bails out, with gurus like Jim Cramer making things worse---or better depending on whether you shorted the market today and made millions---by adding to the panic, then the smart money goes in and starts buying up these undervalued stocks and rides them up again for huge profits. And they will go back up.
What can we say, the markets driven by fear and greed, are not yet on board with Friday's bailout. Where this will end, heaven only knows. But I do know panic will only make things worse.
Bush has said on several occasions that this is going to take a while and he's being realistic. We want instant relief, but the markets need some time to digest.
Shortly after signing the bill, Bush warned that improvement would NOT be immediate. I saw that warning on CNN, FOX, and a number of other sites.
ReplyDeleteI wish I had saved it, as it is now nowhere to be found.
Does anyone recall this, and perhaps have a link or two?
Just linked to Bush saying this again today.
ReplyDeleteThank you.
ReplyDeleteI had this notion that the MSM would try to erase all trace of Bush warning about in the first place.
Paranoia, thy name is Paul.
(But, am I paranoid enough? :-)
Hey, it is ok to be paranoid when it's true!!!
ReplyDeleteThe Brazilian and Argentinian markets are plummeting today.
This bailout is just one more example of the indivisible handjob stroking irresponsible CEOs and CFOs with billions so that they can run the American economy even further into the ground. So much for Keynesian economics. If the goal is to stimulate the economy, why not give the money directly to the American taxpayers? We could do twice as much good for the economy by giving half as much money directly to hardworking American taxpayers. A bird in the hand is worth two in the bush administration.
ReplyDeleteHi Webutante: Saw you over at Neo-Neocon's site and posted this over there.
ReplyDeleteSomething that struck me about the headlines today.
At one point, the Dow had dropped almost 800 points
“See there, the bailout didn’t do any good!”
(in spite of Bush’s warning that this will take a while).
But, at the close, it was down about 370 points.
Forget percentages; my shaky math seems to show it recovered a bit over half the loss.
If this is the Apocalypse, why did it recover anything at all? Why didn’t it just keep going down?
Is it remotely possible that it is adjusting to a new equilibrium, will eventually stabilize there, and the world may still be here for a while yet?
Just wondering :-)
Think you're right, Paul. It's readjusting, as all systems do. And he or she who readjusts accordingly will be better off. The fast, good, loose times may be over, but there will still be many opportunities for the disciplined, wise investor.
ReplyDelete