Historic rebound after worst week drop ever

10/13/08

What a holiday rally!! Finally, US Treasury is deciding to directly invest into equities of top banks in US. This is the bold move I have mentioned. It is much much better make sense to use $700 billions to buy garbage. Although we do not know if this plan would work or not, at least the bloodbath selloff of global stock markets has ended. We need to see how bonds market trading tomorrow in US in order to call the last friday is bottom. It seems the plan that British brings on is more welcome than others. Which raises the question, why did that clear view have to come from London rather than Washington?! It is very simple. Paulson's original plan is going to get our money into Bush, his, and others banking senior executives. Since no one knows what is the current market price of those "Garbage". The Bank could just request blank check written $100 billions and both parties can get some $billions split to share. Even I notice this sucker plan is not going to work, why not other Americans. Now, Paulson need to bend down his keen and need to follow the concept that British propose with some degree of variations. What British plan make sense is they attack the problem directly. Inject cash to whoever banks need ( buying their equities), fully support interbank lending in between, and totally backup each depositor asset. Does it seem common sense at first place?! Why our so proud of US Government is not the one who stand up and saying loud to solve our crisis few weeks ago. They are just keep playing around their naive experiment rather than really to rescue our national. They seems not care at all. Maybe they know how to do it, they are just want our $$. "WT?" our US government is shi?. I have no confidence to our nation current economic plan at all. I hope Paulson follow work is going to work. No matter what, US is 100% surely getting into economic hardship. I will post more later on with technical perspective. Good day!