Tuesday, September 30, 2008

Buy lemons, sell lemonade

I hate to be the eternal optimist here but when I see the DJIA drop 777 points my first thought is BUY BUY BUY. Is there anyone who doesn't think that our markets will gain that back and then some in the near future? (not to mention 20 years from now)


Anonymous said...

I wish all my money was not already in the market so i could buy now. Darn timing is everything!

Bobkatt said...

Daniel-I hope you're right, but I don 't see how this is just a little downturn in the market and happy days are around the corner. I'm no economist but it is just common sense that you can't live beyond your means for ever.
The real total debt of the government right now is $70 trillion not counting personal debts, credit cards, mortgages and other loans. The entire U.S. economy is about $13.8 trillion. That's over 5 or 6 times the average total economy. The government is giving hundreds of millions to Africa, Georgia, the Middle East and now Indymac, Fannie, Freddie, Bear Stearns and now the automakers and airlines are lining up for bailouts. The public is clamoring for government health care when Social Security and Medicare will soon be demanding $4 trillion a year that we don't have.
The war is off the books, the real debts are being hidden via fraudulent accounting and smoke and mirrors. The only thing keeping us going is printing money and borrowing from other countries. When that fact reaches critical mass and we can no longer attract foreign investors the game will be over. The only way to fix it it seems to me is to drastically reduce our spending, you can't borrow your way to prosperity. You have to increase production while decreasing spending just like you would in your private lives.

Anthony DeLucca said...

Remember the "Tech" bubble that burst in the late 90's early 2000? Back then, chicken little was screaming out the doomsday scenario as well. As we can see from todays trading, things are calming down already. And it has been less than 24hrs since the bailout was defeated.

Opportunistic savvy investors will pump money back into the market within the next couple of days, negating the losses suffered. Those who panicked and sold when the indexes hit rock bottom will be the only ones who will see losses in the market. Those who ride out the storm, will do just fine. And those who bought when prices were low.....well those are the folks who will be sitting fat and happy within the next few weeks / months.

Anonymous said...

And we had a surprise "Emergency" to Bail out the crooked S & L's.

And we had a Surprise "Emergency" to Bail out Enron and other crooks.

And we had a surprise "Emergency" to give Amnesty to Illegal's.

And now we have another surprise "Emergency" to Bail out more Crooks.

I am not buying it and if you do, you're stupid and deserve to suffer from your consequences.