Well it is Saturday and I am on my patio writing to my blog, geez I must love my readers. Well folks here is a very short and sweet story about the economy and the markets. It is a disaster. That's it I am done, plain and simple, the economy is now on sandy ground waiting for the enivitable to happen, nothing!!
Time for us to face the reality of what is happening in the Markets, friday GE came out and said things are bad reallly bad THE MISSED!!! In my 10 yrs at this I have never seen GE missed, they have always beaten by a penny and for GE to miss it speaks volumes of the situation at hand. I constantly listen to the talking heads on TV about bottom in the financials, geez please don't listen there is no bottom yet. The fact that GE sold of $5 tells me big money now believes we are in trouble believe me. Right now the big money is betting on lower prices and will leave the IRA, 401K holders holding the bag as usual. It is not a time to own stocks period and many of you will say oh but this stock went up $5 last week it is great. I say ok go ahead and buy and tell me what it is at next year this time!!! It is time to be an aggressive trader not an investor those days are long gone.
The reporters on CNBC believe they would be sitting nice and well 10 years ago when they signed on to salary deals mostly done in stock, Now that stock is cut in 1/2 and you can all write it down GE will never never see $60 in the next 10yrs, sorry to tell the truth but someone has to.
Financials are doomed here and I am now adding one more to my doom list WB (Wachovia). Something is up there I just dont know what it is but WB looks like it can see $15 in a rush if they start saying things are bad, which i believe they will very soon. Their exposure to mortgages might have the faith as SOV and FNM, yes it could get that bad for them. I dont know when and what will turn around the financials but it is not the current FED action.
Bernanke is an idiot simple and what he is doing is setting the economy in a black hole in order to save a couple of poorly run entities is just rediculous. The last time I check if you opened a business and make bad decision our business goes under, the bank wont say Mr Palmer you are a good person and we will not allow you to fail so here is more money. Wow if if was so I would have 500 businesses trying to make money doing anything because I would have no risk.
Time for us to realize we live in a world of many countries competing for the same limited resources to sustain our lives and based on that we should make decision for the Global community not just the few working at Wall Street and Washington D.C.
I hope next week give us some movement in either direction so we can hope on and take some sweet profits but please dont pick bottoms and start investing if you do you are crazy.
Have a great weekend
Saturday, April 12, 2008
Next Week
I am planning to give alot of options plays next week, so options player get your power dry for the winners
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