Find the bottom
Lucky for us the $700 billion bailout did not pass. Had it passed you would have seen a rally in the market. Stocks would have risen for a few months. Following that they would have then plummeted hard and fast.
You see injecting $700 billion into the stock market, buying up the very most worthless securities to be found would artificially inflate all stocks by a large amount. But it will all be fake. It would just be another bubble. This one 100% manufactured.
Now, with the gov't out of the way (if they'll stay out), we are finally clear to find the bottom of the market. From now on, when a rally starts, with a good follow-through day, you can have much more confidence in the market going up. We now have a chance of getting back into a strong market much earlier than if the fed had meddled...more.
EDIT: If you have any interest in the economy at all, you need to be reading what this guy says.
You see injecting $700 billion into the stock market, buying up the very most worthless securities to be found would artificially inflate all stocks by a large amount. But it will all be fake. It would just be another bubble. This one 100% manufactured.
Now, with the gov't out of the way (if they'll stay out), we are finally clear to find the bottom of the market. From now on, when a rally starts, with a good follow-through day, you can have much more confidence in the market going up. We now have a chance of getting back into a strong market much earlier than if the fed had meddled...more.
EDIT: If you have any interest in the economy at all, you need to be reading what this guy says.
posted by BugHunter at 9:13 AM
1 Comments:
Yep. With the 700b injection, stocks will go up like the housing market did with fanny and Freddie. And later on it will translate to inflation and stock dips.
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