Are You Prepared for Dow 12,000? What if The US Sells Alaska to China AND How Do You Say 'Drill Baby Drill in Chinese'

Posted by Howard
on August 28th, 2009

I was joking with a friend At Royal Bank of Canada yesterday that there are no financial rules anymore. For instance, the financial quagmire and debt we owe to China should end in war, but could just end in us selling them Alaska. The Chinese would be dumb to keep buying Treasuries and have already slowed that down. They will get bored of stockpiling commodities. If they continue developing without a major depression, they people may just not be interested in war and could settle for a good trade.

I mean everyone loves a good trade.

Maybe, like the NBA we should just have a trading deadline for governments. Instead of just buying our oil, water and other natural resources, appeal to the Chinese sense of Gambling and sell them China undrilled China for all our debt today.

A few months ago I wrote a post asking if people were prepared for Dow 10,000. We were at Dow 8,000 or so.

I was not. I was short and aggravated after making some money at the bottom and I needed to relook at things from a what if (to the upside) scenario.

Now we are a few percent away from 10,000 and those that were not prepared are truly messed up in the head. I could see us at 12,000 as esasily as 8,000.

The retail investor, myself included at some level, are enamored with short ETF’s, double short ETF’s and Triple short ETF’s. I can guarantee these products would have done well in 2001 and 2002 and we would have been at Dow 30,000 before we crashed if these weapons were in the retail arsenal back at the bottom of that tiny bear market.

I know the few and shrinking financial institutions left standing are slopping up the profits in deal flow. Deals are getting done. My deal making friends that are dealing with managing messes are dying to just move forward.

What everyone wants is a 10-20 percent correction just to test the mettle of the new improving investing mood. Mother market is not supplying it.

If I did not have private companies and Stocktwits to bide my time, I believe this bear market would have finished me off.

I am not sure I am lucky or smart or just a combo, but working hard and the stock market means less than ever and I don’t think that’s a good thing. So if you are working hard and wrong, take a few steps back and go for a walk. Don’t get too stubborn as this market continues to do the unexpected.

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