So what next.... bail out fails and that is it. In my plain view it is irresponsible to fail the bail out.
The reason is this:
If there is a huge downpour and continuous storms the DAM operators have 2 choices
- Open the dam - this will cause some damage but could save most underlying parts
- Argue opening the dam will cause damage and sit. Two things can happen here:
* Rain subsides and normalcy is restored
* It rains continuously and not only the dam breaks but a great havoc is caused.
To give another analogy it is this:
"You have 2 choices. Either you lose $1000 in 3 months or $ 10000 in the next 2 years".
Well, theoretically with the best of research and timing it is a big deal doubling your money in the market these days let alone a 10-bagger so you are better off losing $1000.
Think folks think. Think Congress think. It is cliched but 'Since pros and cons are opposites I am sure progress and congress are opposite ends'
Monday, September 29, 2008
Wednesday, September 17, 2008
The world is falling apart
Lehman is history
Merrill is under BofaA's shadow and for all purposes vanished
AIG has been almed by the Fed by a whisker
Morgan Stanley considering merger with Wachovia
WaMu perhaps the next one to disappear
Goldman Sachs the hero of the street plumetted 25% today
Lloyds mulling eating HBOS
These have been some of the most catastrophic events in Wall Street in a while - This is deeper hole - a black one, I am afraid. Much deeper than the dotcom burst. That was just the technology world. This one is the very basis of modern capitalistic world - Banks, Financial Services and Insurers.
Who will bear the responsibility of leading the finance structures the backbone of any economy. Loans are even costlier now. The economy is already in recession with more than 25% drop from the 14,000+ mark that Dow hit just a few months ago.
The common man's dreams are shattered now. Will this world recede into the 1980's with modern technological inventions available but doomed into lack of money.
What happens to the booming economies. Are funds tough to come by? What happens to the credit that masses have taken in these places?
Merrill is under BofaA's shadow and for all purposes vanished
AIG has been almed by the Fed by a whisker
Morgan Stanley considering merger with Wachovia
WaMu perhaps the next one to disappear
Goldman Sachs the hero of the street plumetted 25% today
Lloyds mulling eating HBOS
These have been some of the most catastrophic events in Wall Street in a while - This is deeper hole - a black one, I am afraid. Much deeper than the dotcom burst. That was just the technology world. This one is the very basis of modern capitalistic world - Banks, Financial Services and Insurers.
Who will bear the responsibility of leading the finance structures the backbone of any economy. Loans are even costlier now. The economy is already in recession with more than 25% drop from the 14,000+ mark that Dow hit just a few months ago.
The common man's dreams are shattered now. Will this world recede into the 1980's with modern technological inventions available but doomed into lack of money.
What happens to the booming economies. Are funds tough to come by? What happens to the credit that masses have taken in these places?
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