Thursday, October 9, 2008

Let's take a look at the way back machine. I said this a few short weeks ago.

Doesn't anyone ever think for just one freaking minute that when the ban is finished on October 2nd that those very same stocks are going to plummet? It's going to be a blood bath that day. How short sided can people possibly be? The government has intruded for a few weeks of "normalcy" and has leveraged the future as payment.

Since then, the Fed extended the short sale ban a week. It expired today. Hmm. What happened today? Oh that's right, the DJI plummeted over 7%. In the past week it's dropped over 20%. In a week! Fear, uncertainly, and doubt rule the current financial landscape. Ever since the government stepped in and bought Bear Stearns, no one has known what the gov't will or will not do. That's never good. If they had merely kept their noses out of the private sectors business maybe we wouldn't have this problem.

The feds likes to say that some institutions are just too big to fail. What the crap does that mean? In my opinion there's no such thing as too large to fail. If a company is poorly run, then why rescue it? It's obvious that rescuing poor companies isn't exactly instilling confidence in people. Pull the plug. Let's start over. Whichever banks survive the fall are the ones that deserve to stick around.

No comments: