Tuesday, September 30, 2008

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.

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Blogger Wow Panda said...

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.

9:39 AM  

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