IN GOD WE TRUST, ALL OTHERS PAY CASH !

It's been a rocky and somewhat of a craggy year or so in the stock market. Most stocks are now trading at fifty two week lows, some at twelve year lows. The credit crisis, coupled with tumbling home and stock prices, has produced a paralyzing fear that has engulfed the United States and the World for that matter. A free fall in business activity ensues, accelerating at a pace that I have never before witnessed. The United States and much of the world is trapped in a vicious negative feedback cycle. This debilitating spiral has spurred our government to take massive action. In poker terms, the Treasury and the Feds have gone "all in." Economic medicine that was previously meted or doled out (using my crossword knowledge here) by the cupful has recently been dispensed by the cubic yard full. These once unthinkable dosages will almost certainly bring on unwelcome after effects. I see inflation in the future, good for savings interest rates but it will make everything cost a lot more. The people running things precise nature is any one's guess, though one likely consequence is an onslaught of inflation. Moreover, major industries have become dependent on Federal assistance, and they will be followed by cities and states bearing mind boggling requests. Weaning these entities will be a political challenge. They won't leave willingly. I've been buying what I profess to be strong companies stocks and riding them lower as most are doing right now. So here I am, a little confused but still betting on America. Whatever the down sides may be, strong and immediate action by government was essential if the financial system was to avoid a total breakdown. Had that occurred, the consequences for every area of our economy would have been cataclysmic. Well I'm still betting on America and am also "All in" I have cash on the side just waiting for the market to bottom.
Like it or not, the inhabitants of Wall Street, Main Street and the Side Streets of America are all in the same boat. Some with and some without life jackets. And I'm still betting that SIRI will come out on top of the satellite radio world.


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