This was shocking when I read the following in the Wall Street Journal today..
"Federal Reserve Chairman Ben Bernanke, raising the level of urgency in dealing with the nation's housing crisis, called on lenders to aid struggling homeowners by reducing their principal -- the sum of money they borrowed -- to lessen the likelihood of foreclosure, and endorsed a bigger role for the federal government in backing such mortgages."
Ben needs to stop putting band aids on an ill infected wound. Let the financial system clean it self out, let a few big banks go bankrupt. Historically, a "soft landing" remedy by the government has never worked.
This emotional market is great for trading. I heard what saved the market was that CNBC had reported another update on AMBAC that the bail out is making lots of progress. If only CNBC can us from a bear market hahah.. My prediction is that DOW 1100 will come within this month :)
Long Postions: PBR, POT, PAL,MSFT
Short Positions: SKF
Closed Position: Drys Put options [+70% gain]
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