Monday, January 21, 2008

Bloodbath

Lots of people on Wall St are on their knees right now saying a little than you prayer to the man upstairs. No not him. I mean Martin Luther King. They're saying thank you MLK for being born right around now and sparing us from a 7% or 10% slaughter this morning. Tomorrow will be ugly but not as ugly as it would have been today. Everyone will have time to think things out, analyze, discuss, etc before pushing the sell button in a panic mode like would have happened this morning.

Plus I still believe as I did last week that Benny B will ride to the rescue either later today or early tomorrow with an early rate cut. Don't be surprised if at 8:30 CNBC starts popping champagne and declaring the bear dead as Benny B slashes by 75 or maybe even 100.

And here is a suggestion for Jorge and Co:

If you are really gung ho on spending money, why not kill 2 birds with one stone. Send everyone 2 checks. The first is the $1500 or whatever amount already proposed. Then send a second check only cashable only at Merrill Lynch, Schwab, E-Trade, etc. Stimulus Part 2 only this money has to be invested in stocks. Sure it is ridiculous and makes no sense economically speaking. But so is the idea of any stimulus package....or a mortgage rate freeze....or killing the dollar...or an FHA loan for subprime scumbags....or encouraging people to buy houses they can't afford using a ninja ARM. Just because an idea is insane doesn't mean Jorge won't put in into action.

3 comments:

Malcolm said...

I'm starting to think that the problem with the international markets has to do with the fact that our administration is denying the fact that there is a problem.

Until we admit that we have serious problems, the world market has no reason to believe that any meaningful change will occur.

Scott said...

Tomorrow will be a very interesting day. The Asian markets are down ANOTHER 5% today (Tuesday), for a ~ 10% loss Mon/Tue. I think we'll get smacked for 5%+ losses tomorrow.

Even those dolts on Wall Street are starting to realize that a rate cut isn't going to really work.

Ed said...

And yet Europe is up this morning. Me smells a Benny B extravaganza this morning.