Oh No Another Post!

Well I couldn't leave this alone today....had a discussion with a friend ( more of a monologue actually- Ha Ha Ha) and here I go again!

There's gonna be several more failures unless the government buys up nearly all bad debt including failed lemonade stands ( they don't have enough money to do that 'cause it's WAY more than $700 billion). When they do dump their bad paper on the government, and Paulson is hurrying to get that done, the banks will go back to doing what they've been doing (trying to make a fast buck) before new, tough regulations get passed.

The next big shock may be GM getting kicked out of the DJI- it's market capitalization is down around $5.8 billion- if it goes under $5B it could happen-that is unthinkable for what was once the biggest corporation in the world. That's another issue- a couple components in the DJI have changed (I believe WaMU was one) so a this year-last year comparison isn't the same...

I believe that the market drop of 157 points on Friday immediately after the bailout passed was because short sellers (in non-financials) were betting on the bill to fail again and it didn't so they had to quickly cover the stock they borrowed to minimize losses.

The 30 day ban on short selling financials ends Wed.- 72 hour trigger when the bailout passed. . My guess is the market will go up tomorrow but nothing big... The SNL video about the bailout with George Soros in it wasn't far off from the truth. (watch it if you haven't) I believe he made over $3 Billion last year doing hedge fund trading. I've been saying he backs MoveOn.org to get the Dems in office because the market would tank even more and he'd be a big winner....

The bailout actually ended up being $810 billion. You must add in an additional $700 billion the Fed pumped into the stock market during the last year to prop it up. That's $1.5 TRILLION. Remember I've been telling friends about how much they've been pumping in starting over a year ago. The only person I've heard mention that fact is Ron Paul- NO other politician of either party has 'fessed up to that. That "propping up" amounts to setting prices which even Ben Bernake agrees was something the government did wrong during the depression (Ron Paul questioned him about this during hearings on the 1st bailout bill). The market wants to drop-Paulson & the Fed won't let it. All they and the bailout have done is to push the bubble down the road.

Also, the result of the emergency European summit this weekend was that the govenments of Germany, Ireland and I believe Italy are now guaranteeing all private bank deposits in their respective countries.

Well, that's enough for today. I SSOOOOO hope I'm wrong on this stuff....