Market Craziness

As you may have already heard, the U.S. government decided to intervene in the financial market this week in unprecedented methods: nationalizing AIG, disallowing shorting (of financial companies), U.S. Treasury will backstop money market funds. And will take over bad loans with TARP.

Unfortuntely, none of these actions solve the problems of the economy: job losses, too expensive homes, high inflation and wage stagnation. Mortgage problems will get worse as more people cannot pay them (job loss and/or higher reset rates of all those funny loans). GDII (Great Depression 2) is still on track in my opinion.

With that said, I've gotten out of the market mostly and taken my profits of all shares of: DXD, QID, SH. I still have SRS shares only because it's already in the red (and eventually things will go from bad to worse for real estate, so I'm going to hang on). I may buy some SKF but things are very much up in the air. I would have hung in if the government didn't get involved, but this morning, there is just too much unknown out there (government changing the rules overnight willy nilly). Privatized profits and socialized losses....

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