The average person who has no real financial knowledge is about to get seriously crushed.
By Daniel at 19 March, 2009, 1:17 am
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Don’t short this market yet until we see how this all shakes out. If the dollar is falling, all earnings from foreign sources to devalued dollars will rise creating an illusion of growth. But, while value will be falling, that doesn’t mean the price won’t go up in proportion to the drop in the dollar. What the dollar does in coming days will be critical.
As other nations devalue, the dollar could once again “appear” strong and the market go down. But, right now, don’t count on anything but that this is not good in the long run for the dollar or the nation’s economic health.
The decision to buy Treasurys shows that the crisis is here.”
“The crisis is here” and the Dow is up 152 points (or more). Amazing. Every time the Fed or the govt makes a move that is clearly desperation the markets reward them with a rally. I don’t know whether to laugh or to cry.
I may be wrong but I believe that this is merely a prelude to a major bloodbath. For the economy and the markets. Nothing is being corrected. No problems are being solved. All that has been done is to throw large amounts of money at the problems in various ways and that is all that this is!
I don’t know what is worse, that they keep running these con jobs and telling the lies, or that there are still so many people who believe and buy into it!
You should stop and ask yourself; if things are getting better (review the last 7 business days and the media reports) and if the banks are getting stronger and profitable(review the last 7 business days and the media reports), why did the Fed announce this major and drastic move? Could it be as the article said; “The decision to buy Treasurys shows that the crisis is here.
Buy now and make money, but use caution because this is not a new direction, just a detour before we head back to where we were heading before.
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