$700 billion resuce

9/21/08

As every American knows that each of us is going to be in debt $2000 US dollar more very soon to playing a game called " Main street is bailing out Wall street". I feel very disappointed that our Fed Chairman, Treasury Chief both keep failing to solve the financial crisis early. I do not mean I see this crisis is coming earlier than they honestly admit right now. But, I am sure every my blog reader knew that I have said this recession is the worst since great depression of 1929 about 6 months ago. And I have been successfully warn each of you all the fade rally of 13000 at May and ongoing keep making lower lows on our major stock indexes. Now, I personally did not think the propose $700 billion is enough to take all bad loans from all financial firms. This is the least but sure not the final of the amount. I would say $2 trillion ( my gut guess only ) at the end. Why?! There are still lots of "not in the books bad loans" that each financial entity has been putting away from their balance sheet. US accounting rules are totally screw up since US government allowed remove of M3 asset in balance sheet in 2006. No uptick rule sell shorts in 2007. Look at what (!?@#$) has happened since!? It is all their faults. It is so ridiculous how the hell the hall of fame investment management companies ( BSC, LEH, MER...) been doing their risk management?! All of those high-paying financial experts in the firms are showing no ability on how to manage their companies but keep telling lies to their employees, bondholders, stockholders, medias, publics.....etc. Apparently, lots of people has already lost confidence on US financial system and the credibility of US banking and financial services firms. US has always be the top, the sharpest, the most superior over the rest of the world. Now, US is pulling itself into shallow big black holes(it is sinking) and it may never has the power to re-generate itself to become the strongest player in term of economic power. I am still remain extreme bearish about stock markets and economy in long term. And I strongly believe US stock market will make new lows in the near future ( very possible after new year of 2009 ). Do not let the 1000 points recovery in Dow Jones stock indexes tricks you. It is just giant short covering rally. It may solve the worst financial banking crisis only. The economic fundamental has not change a bit. US is still in very bad shape. Housing is still going down. Mortgage is getting harder to get. Gasoline is still above $4.00 despite oil future has drop lots since 2 months ago. Inflation risk still exist. There are still lots of unhealthy uncertainties above water. Wall street is no longer the free market or the old well-known financial hubs. Now, welcome to new era of Wall street. Hope this is not getting us to follow the path of ........