Tuesday, October 14, 2008


The DJIA soared 936.42 points, its biggest 1-day percentage gain since 1933!!!
Now that's a dead cat bounce!!

Removing all limits on Central Bank currency-swap arrangements (to meet USD demand), Governments buying Equity stakes in 'bankrupt' banks and endless liquidity infusion arrangements to solve problems of 'insolvency'.

Meanwhile, Housing numbers show no signs of improvement, unemployment numbers will rise, the auto sector bailout comes through, and quarterly results will show signs of deteriorating fundamentals.
We may not realise it yet, but the era of cheap money is over! and the perma-bulls are going to be '''stress tested.'''
As some wise commentators have pointed out,
Marc Faber - the current bailout does not address the problems of overleveraging which went unsupervised under the watchful eye of the US Fed & Treasury.
Jim Rogers - In the long term, bailing out weak and insolvent players at the expense of conservative and prudent players , defeats the very principle of free markets, & he fears the coming Inflation Holocaust more than the short term turmoil caused by letting insolvent firms go bankrupt!http://www.cnbc.com/id/27097823

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