Where should I start!!!! I will first start by saying I told you so and secondly PEOPLE need to goto JAIL over this crisis. World markets are just opening overseas and are locked limit down as the news of Bears Sterns total collapse and sell out to JP Morgan for $2 a share is sending markets downward. Imagine this stock was $159 last yr WOW. There are obviously serious problems going on at Wall Street and this will no doubt be the first of a number of collapse that will occur in coming months.
Anyone think Bear Sterns was the only firm doing highly leverage trading in the market are totally wrong. Hedge funds, mutual funds and trading institutions use these highly leverage tools to make more money on smaller capital requirements everyday. I dont know what will happen at the end of day tomorrow but I am sure some time tomorrow we will be down over 380 points on the Dow.
What I see happening in the US markets is the same exact thing that happened to Japan in the 90s of massive inflation, devalued Yen, real estate bust and increase unemployment. The most important note we should take away from the lessons of Japan's 90s financial mistakes is that it has taken almost 15 yrs to fix the problems.
I will be a very interesting week and I think this week will be a week if you are a excellent trader to make lots of MONEY. This news should gap us down limit down tomorrow morning, Fed meeting on tuesday and options expiration on Friday will make this a roller coaster week for sure.
Tonight I am going to sleep very sound knowing this week WILL be a great week for volatility and some wonderful trades.
I will try and post some trades as fast as I can but I am sure it will be a fast spaced news filled week.
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