Media Panic

The Dow sits at about 8500 as we speak. By how the media is portraying the market, you would think that the sky is falling. I have already said that 8500 is about the lowest that the market will sink. Yahoo! news is writing something about the Dow "plunging." Is 150 points a plunge???? Give me a break. I strongly suspect they exaggerate (HYPE) everything just to get people to read their news articles. How unprofessional - really!!!! They have become tabloids and nothing more. I don't think they want the economy to improve since they favor a certain candidate for office (the one who wants "change"). If you have any money at all, now is the time to buy - the market can only go up. Buy 100,000 shares of anything that looks conservative and safe and in six months you will be happy you didn't panic like everyone else. Of course, if you don't believe me, get a second opinion.

The future

Well, now it looks like the President must explain himself to a group of world leaders in New York. The papers are saying that the U.S. economy and the rest of the world are inextricably linked and they are right. Now, as a result of this greedy financial fiasco, you can bet that the rest of the world will be very cautious about linking up with the U.S. economy from now on. The U.S. is now beholden to all those foreign governments and big foreign investors for buying so much of the debt guarantees (in the form of bonds). What would happen if the U.S. defaulted? It is not unthinkable. A few months ago, who would have predicted that the country would be left with no large investment banks to speak of? Next up for your tax money? The auto manufacturers. Keep this in mind, the government is not bailing out the economy - it's bailing out the big Wall Street firms which lost billions. Wall Street is holding the economy hostage by saying that it is no longer credit worthy and no bank will lend it a dime so that their enterprises can keep going. Who knew thay had zero liquidity? Of course, a seizing up of the most important credit markets will cause the economy to sputter in a very big way. What a way to do business. The economy will survive this turmoil but the rest of the world will now ponder this sad and risky scenario very seriously and begin to stay clear of the U.S.