Posted by
Jack Cruger on Tuesday, September 30, 2008 11:55:07 AM
I feel that the inaction of Congress yesterday (09/21/2008) was a good thing.
Yes, I know the stock market took a large hit, but think about it, does the stock market really reflect the state of the economy or for that matter the health of the companies the stock represents? I say NO.
In my opinion the stock market is not what it use to be in as much as the players are not looking at the companies health but only at the price of a piece PAPER with a company’s name on it, and that is what they are trading, PAPER.
The traders will take advantage of the fall and then the rise based on the price of the PAPER without regards to the companies the PAPER represents. The market will start off in an UP situation this morning (it has of this writing) and will continue until the traders have made at least made enough money to make their clients think they regained some of their money (PAPER) back.
So, one of the good things is somebody will make money, and a lot of it. Don't forget, the traders will trade, because if they don't they won't have a job.
The other was that the bill, voted on yesterday, was not the best it could be or it would have passed, regardless of what the polls said.
I personally don’t know if it was or not. I do know we will get a better one and it will pass as long as the taxpayers understand it as not a bailout for wall-street. I said above the PAPER will fly with or without the bill. This bill is a massive loan, which in the long run will make some money and put it back in the government treasury.
The Government will buy the PAPER from these companies at a discounted rate and later, years later, sell it off at a profit. Sort of like Wall-street, only they will be buying and selling their own PAPER.
Don’t panic, remember buy LOW sell HIGH not the reverse.