The market got sick today,down 500 points. It's about to get a lot worse.
AIG needs 40 billion dollars for cash flow. Kind of makes you wonder where you would get that amount of money or why you would need that much. That is twice what our three major car companies are worth in stock value.
A tremendous amount of money has vaporized and who has lost it is still a question. I submit that we know who lost it and it wasn't Joe Six Pack (Joe's never saved a dime in his life).
The Fed is going to meet tomorrow to discuss lowering the Fed Funds rate. Could be a real waste of time. Look for world interest rates to jump up to 10 to 15 percent in the very near future.
Previously bought 30 year Treasury Bonds could be discounted drastically to raise cash. Could be a real buying opportunity.
Cash is king. Notice how little of it is around. Those companies that don't have it, are biting the dust. The money that has been lost, has been lost by people with savings. So far, only banks and financial institutions have lost money. Just wait till you get your retirement bank statement at the end of the quarter. You'll notice the money they lost, was your money.
Copyright 2008 All rights reserved