This is not a problem that can be solved by money alone and even if it was it would take longer than a few weeks for the money to work its magic. Problems that were created over many years won't be solved in a few days, weeks, or even years. I'm taking advantage of the current rally to go short the S&P 500. We may have saved the banking system, but the economy is still in shambles. With all this talk about what government can or should do to rescue the system, what has been overlooked is that earnings are still at the heart of what moves the market. I for one do no think that Q3 or Q4 earnings will be anything to write home about. I'm using GE as a bellweather. Read their 10Q from July 25th and their guidance two months later. GE is exposed to just about every sector of the economy. If GE, one of the best run companies in the world, is cutting its dividend, raising cash, and guiding lower, than that should giver just about everyone pause.
$81.62 (10/14/08)
