Iceberg

THE ICEBERG

Is this the tip of the iceberg or has it almost melted ? Greed pure and simple has created a global financial crisis. In an earlier blog I stated the government getting involved can only make it worse . Any further government intervention will only been seen as desperation and create further panic . The markets need to find a bottom . Bad news is that the hedge fund managers and Wall street guru's can make more money with the panic and “ blood in the streets” .Healthy and profitable companies will fall victim to this avarice . When “ value” investors try to step in and buy up bargains the short sellers will just sell shares and drive the price down. Many thought the bottom would be at the 8300-8700 DJIA level .The market will soar through that today . Conventional wisdom might dictate that when we reach 7000 equities are 1 /2 price and time to step in and buy bargains . Here is the plain and simple fix. People who are in bad mortgages put themselves there and should get their lunch handed back to them , as should the banks and mortgage and wall street people also . Foreclosures need to move forward the FEW STUPID and GREEDY people will lose their homes .THEN the government should take our tax dollars they are so easy to waste and buy the foreclosures originate new mortgages at FAIR MARKET VALUE . The stupid and greedy get penalized and hard working americans get the chance to own a nice home at 1960 level prices. Remember just 90 days ago the price of oil soared above 140 dollars a barrel? The same greedy wall street folks drove that up with HYPER speculation> Now they are doing the same thing to drive the markets lower. Many say its to late to get out , I wonder how you didnt get out earlier . The market will go lower count on it .a global economy that relied on the “ economies of scale “ got us in this mess. The solution is for the wealthy people in local communities to pull their money out of the stock market and create LOCAL BANKS .the good news is that many of the middle eastern dictators are starving also .So here is the bottom line Companies and people who got MEGA RICH through the power and leverage of the stock market are going to lose big time .Consumer spending is going to be just a myth or a gleem in an old timers eyes . Restaurant will be hit hard , dont be surprised to see the Bonefish type franchises fold up . Nail salons , trendy clothing places and other local shops that cater to EXCESS will go bust . In a nutshell most business that sell over priced items or services you can live with out will dry up . Lets see how long the concept of 3 national drug stores on each corner facing each other lasts. The automobile business may collapse if not it will be consolidated . Say goodbye to the hybrid and electric cars as gas has slid down and its not profitable anymore . So get the digital camera out and take photos to show the grand kids . Gravity will always prevail and the world will be better off in a few years . Walmart will do well and perhaps restaurants with $1 menus will survive.

Be sure of one thing the consumer is going to spend money only essential items . LasVegas and other trendy vacation spots will have bargains galore . Live within in your mens and perhaps we have vanquished all the excessive spending. Will the government set up a trust fund for all the sports players who are out of work and no longer making 20 million a year .will OPRAH come forward with her BILLIONS and save poor blacks in depressed in the inner city ( not a chance ) .sleep well at night knowing most of the people who got mega rich are heavily invested in the stock market and real estate and heading for really hard times ..harder times than “ Joe six pack “ Many business' will fold up because they have survived by providing non essential goods and services .So if you want a better life play the market and buy ULTRA short vehicles like SKF or FXP there are hundreds of ETF'S that can accomplish this .This is the chance of a lifetime to make money in the equities market , play short with the big boys when the market turns around it will be slow to do so and you exit and can snap up bargains for the long term to retire in Costa Rica