The Dow Turns negative on the details of the government bailout

SO the government pumps like a heap of money into the banks and guaranteed bank to bank liquidity and has agreed to take positions in banks. Thats the short version.

Yet the dow is now down over a 100 points. OF course we can not predict which way it is going to go because we claim no ability to see into the future.

But the following we suspect. This bail out will save the asses of the fat cats and to date we have no serious talk of holding hearings to lay the blame at some of these folks that raped their companies while the individual investor got screwed.

We also suspect the the country will take a another stake in the automotive industry increasing their presence in that arena.

However what about the trillions of dollars in credit card debt? People are walking away from homes that they have become upside down in. Banks have increased the time frame for reposing autos from 30 to 90 days. They don't want the house and/or the vehicles because they can not sell them.

So what happens when Credit card companies decrese their limits, increase their rates and your credit score goes down leaving you unable to use a credit card?

Bang anther meltdown That will require government intervention to avoid the "D' word. Depression.

Now lets discount for a moment that many of us brought our current situation upon ourselves by writing checks our ass can't cash. We all know that. We were offered all we could take at cheap rates. The only thing we had to do was promise to pay it back. But since only a small percentage of Americans still value the worth of their word and the constitutional precepts by which this country was founded we suspect many more will walk away from their dates. Financially it makes good sense. Morally, it is wrong.

But again, remember we are discounting that. We need to ask why all these Fed interventions are not working. Dow currently down over 200 significant drop since I started writing this post.

Could it be (remember we often caution people to look at what they do not see as opposed to what they do), Could it be that a large number of people have recognized
that a major shift from a democratic capitalistic free market to a nationalist/socialistic agenda has changed the not just the profit future by which free markets thrive. But has also shifted this country off it's basic foundation.

Go back through "all" our posts and read. Yeah like that's going to happen. But were you to do so you might discern that we still, have not lied to ya yet.

Can you still profit? Of course. You will just have to may more governmental fee's to do so.Add to Technorati Favorites

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