CHESSNOID

Less than a year ago, the stock market had hit its all time high on October 7, 2007 and the DOW closed at 14,164. Today, September 17, after a 454 point drop, the Dow sits at 10,609. This year has been marked by backroom deals to save our big companies. Countrywide, Bear Stearns, Fannie Mae, Freddie Mac, and now AIG. We let Indymac and Lehman go bust. I guess they didn’t bribe the right congressmen or pay enough lobbyists.

Again, the market is suppose to bounce after a drop like this from bargain hunters finding great deals. Except the economy seems to be scaring even the bravest investors. Of course, with good reason. Incredibly enough, this all stems from the housing bubble busting that the 3 stooges Bush, Bernanke, and Paulson denied existed a year ago. These are the financial geniuses that have brought the US economy to its knees.

There is a second wave of mortgage loans that will reset and will continue to chip away at the economy. This reset is talked about in a few housing bubble blogs. They were right about the bubble bursting when they called it a few years ago. Based on what I have read, they are right again with these loans resetting which will cause more financial chaos and shatter previous record foreclosures. You hear about economists and analysts on main stream media now talking how bad this is and compares it to the worse times since the Great Depression. I am starting to feel like we are headed down the same path.

When I listen to Obama/Biden and McCain/Palin about what they plan on doing when they get into office, I hear bullcrap. Neither party has any idea of what to do to get us out of this financial mess. Three of these are current serving senators of the lowest approval rated congress. What are they doing now to help the America out of this financial crises. NOTHING. What will they do when they get elected. NOTHING. They are all talk and no action. Obama is actually just like Bush when he became President. No experience and look where we are now. McCain is a war hero, but saying you have no clue about the economy is like Biden saying he wished Obama had chosen Hillary. Yes, both those things happened.

What do we do now? Prepare for the worse because the bottom has NOT fallen out yet. Hold on to your cash, pay down your debts, improve your job skills, go back to college, and stock up on food and supplies. That is what I recommend doing. And if you are one of those fortunate people who have over $100,00 in the bank, make sure you are not above the FDIC guarantees unless you want to be like those INDYMAC bank victims who lost a lot of money because they were complacent.

Do not listen to anyone calling for the bottom this year or next year because there is no reason for it to happen. We are going through the business cycle and squeezing out the excesses. Unfortunately, our leaders in their bad decision making keep making it worse.