CHESSNOID

A real market meltdown happened today.  After the 3 stooges Bush, Bernanke, and Paulson got the  fraud bailout passed by both the House and Senate last Friday, a global stock sell off gained momentum over the weekend.  Is this a good or bad thing?  Most people would say bad since most people probably have some money in the markets either in broker accounts, 401k accounts, or IRAs.  The numbers we are looking at today were the same numbers we were looking at about 4 years ago.  Coincidentally, the prices of houses in California have been dropping to their 2004 prices.
We have broken the psychological numbers in the markets, but soon will be looking at technical numbers.  I don’t know what they are but you can go to a number of different websites and see their interpretation of the numbers.  I think fundamentally we are going through a major consolidation and most of the stronger companies will survive just like in the tech bubble when that popped.  We never did see a NASDAQ 5,000 since that bubble burst, at least not yet.  Based on the market closing in the 1800 barrier it probably won’t be for awhile.  I do think it will soon be time to buy stocks again in a few quarters for the long term.  I didn’t call the top of the market, but I did sell all my stocks in all my accounts before we hit the October 2007 all time highs were made.
Stocks I still like today are Google and Apple which have finally succumbed to the recession.  Google finally did break 50% to $360 as I am writing this and Apple is about 60% off its high at an unbelievable price of $89 a share.  I don’t think the all time  numbers they hit $737 and $202 respectively will be seen again in the next few years.  Of course no one can predict the future, this is just easy to see from where we stand today based on the economy as it is now.
I still wonder if Bush, Bernanke, and Paulson think we are still not in a recession?  Hmmm.  I have a feeling we will have another bailout bill soon being enacted.