CHESSNOID

I think most investors and non investors alike are use to the major swings in the markets that we have had in the last year.  In the past 5% moves would be breaking news stuff, but now it is just par for the course.  Today they announced we are officially in a recession since December 2007.  For a whole year, but the professionals can only call it now.

If you live in America, this is old news.  We have crazy numbers in every report: higher foreclosures, higher unemployment, higher prices, etc.  Bailouts for Wall Street, banks, insurance companies, and now automakers.  This list seems to endless.  American Express recently converted to bank status just so they could get their hands on some of that bailout money.  Is the bailout the solution for failing businesses?  We know it’s not the answer and that they should be allowed to go bankrupt.

That is why we live in a free market society because it does work.  It may always be pleasant but in time it will work itself out.  Previous government intervention has proven it can hurt more than it helps when bad decisions are made.  Let’s hope the new Obama administration just says no to bailouts!