Another Bailout Bill Another Selloff
Tuesday, February 10, 2009 16:18The $838 billion bailout out bill dujour won approval in the Senate by a vote of 61-37. The market reacted in the same way as the passage of previous bailout bills – It sold off.
Why does this happen? The media is mostly to blame. They are constantly peddling false optimism while setting their viewers sites on some future event that will make it all better and when that event comes and passes, with no result, they quickly move on to the next. Traders capitalize on this false sense of security by buying into the anticipation and then selling into the actual event. As the adage goes, they are “Buying the rumor and selling the news.”
The S&P 500 lost over 4.5% on the day with the financial sector leading the declines as they shed over 10%.
The bright spots today were the usual suspects: Gold, The Japanese Yen, and Volatility. These are 3 of my favorite places to invest for 2009. My “10 Sectors to Out Perform The Market in 2009” goes into them more closely but a simple glance at the following chart illustrates the recent movements.
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Tommy T says:
February 10th, 2009 at 9:59 pm
STIMULUS PLAN PLANNED INSANITY “IT’S A PYRAMID SCHEME STUPID”
Philadelphia February 10, 2009………… Presidential Inauguration, financial charts, graphs, stock market averages,
housing meltdown, world credit crunch, put these away in your memory vault. Memories will be the only asset anyone will be left holding.
The current financial trillions bailout and the stimulus package in place by the incoming US government administration is merely a
repetition of Pyramid Scheme insanity. This new dynamic “REVERSE PYRAMID” zero sum scam imitates in reverse or upside down
the 17th 18th 19th and 20th Century Pyramid schemes which took decades for the transfer of wealth and power. The creators of the
“REVERSE PYRAMID” and their operatives transfer immense power and wealth immediately accelerating taxpayer debt out of thin air. No need
to manipulate markets, create jobs, assist state government, and bolster infastructure over decades with this 21st Century scam. One can easily
understand the mad rush to get so called bailouts put into law. Stimulus plan planned insanity it’s all a Pyramid Pyramid scheme stupid to perpetuate a
debt based economic and financial world.
For further information contact 215.923.1078 write POB 40068 Philadelphia, PA 1910 email: ak47popcorn@verizon.net
website: http://www.greatcampcustommailbox.com/ak47popcorn2007blog
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Portable Dishwasher.net says:
February 11th, 2009 at 12:58 pm
This whole bailout mindset makes me sick. All we’ve done the past 8 years is spend and spend, and look where we are. Why do we think spending even more will make things better? Also, do we really want to reward companies for failing? Because that is basically what it is. People are learning that if your company fails, then the government will be there to pick it up. It is the same mentality as welfare was in the 90’s. And we all know that went too far and had to be ended. Are we going to have to face an economic collapse in order for people to realize welfare for companies is not what we need?