This is not a crisis that will be solved with tax cuts and lower interest rates.
If you make it easier for a bank to lend money and they are not lending it, what’s the [email protected]#king point. I have many friends in Phoenix, smart guys, guys I would give my last dime, that can’t get breathing room for their projects.
Why the hell would that person be inspired to buy stocks right now, down 500 more points or 2,000 more points for that matter.
There is no REAL number that relates to mood or confidence. Banks are using cheap money to shore up their putrid balance sheets.
We need leadership right now. Confidence comes from the top. Not from this blog, not your mommy. Interest rate cuts wont cut it. Tax incentives?…WTF. Have you seen the start-up market lately. We are all in that business already. We don’t need no stinkin’ incentives. If you are a working middle class executive, you were just fired or will be. That’s pretty good incetive.
What I would like is, for example, for the best city in the world – New York, to have a [email protected]#cking airport that looks better than a Russian airport. Can’t our government create confidence by raising taxes for jobs for legal immigrants that will make that happen and get people spending and believeing in America?
Instead, Bush comes on TV Friday and says they are “WORKING on a plan”. You think?
Sure I may dabble in the indexes tomorrow, mainly because I can and it seems like the right thing to do, but the average investor should not until we see some leadership.
In the interim, stocks are just pieces of paper that have a market because of perception. The perception that chaos won’t ensue. Frankly, we have chaos. Catching this falling knife and making money off it would just be luck at this point. Big woop on being lucky. All yours.
When a market crashes, we all lose something. Shit, I am nervous and I am 10 percent allocated to stocks, after being slammed for the last three weeks. I will still see bids disappear as they have been doing. It’s like the Dead Sea at this point. If you have a cut and enter the water, the salt will find the wound.
I have a little cut in my portfolio (10 percentish) and the Global Markets are my Dead Sea right now.
At this point, I watched the Canadian Markets close on their lows down 10 percent. Their venture Index was down over 10 percent. That’s a crash. They closed on thewir lows because they are waiting to see if anything significant comes from our leadership tonight.
I doubt it.