[Rhodes22-list] Dow Jones.....I hate to say it.....

[Rik Sandberg]

Brad, Dave,

Yes, lets hope the government finally figures out that they need to just 
leave this thing alone and let it straighten itself out naturally. 
Everything they have done lately or can do, has and will, only make the 
problem worse.

Stupid is supposed to be painful ...... and we're coming into the 
painful part. You can't loan money to people who can't pay it back, no 
matter how thin you think you're spreading the risk.

Remember one thing, and I can't stand and holler this loud enough ..... 
you haven't made a dime in the markets until you have sold and have 
CASH. That's assuming that all this doesn't take the dollar down with it 
..... then you better have corn or gold....... hopefully we won't go there.

Rik

Brad Haslett wrote:
> Dave,
>
> Let's hope I'm right and you're wrong.  It smells like a necessary
> correction and a mild "bank run" to me.  I'm at least ten years away from
> needing to cash-in any chips so I'm along for the ride.  What a good one the
> last six months have been, I "made" more money in my 401K than my day job
> pays.  I knew that wouldn't last.
>
> Other than the Fed stepping in to prevent a liquidity crisis, I hope the
> government does nothing.  My personal solution is to drive to Branson, MO
> today for a mini-vacation before Cora starts school.
>
> Watch the market for me today and cry for us all  if it gets any more nasty.
>
> Brad
>
>
>
> On 8/10/07, DCLewis1 at aol.com <DCLewis1 at aol.com> wrote:
>   
>> Brad,
>>
>> Your point about the business cycle is well made - but the issue is what's
>> bringing it down.  Is it "the usual stuff", or is it something
>> truly  sinister?
>>
>> Two ponderous and conservative governmental institutions, the ECB and the
>> Fed, that like to move slowly and with incremental steps, moved quickly
>> to  make
>> available up to 95 Billion Euros(ECB) and 24 Billion USD - done within  a
>> space of less than 8 hours(maybe less than 4 hrs, I didn't time out when I
>> learned about each move).  That's a lot of money and they skipped a lot of
>> staffing to move that quickly - It tells me there's a big  urgent problem.
>>
>> We know a variety of US, UK, and Australian hedge funds have  folded.  We
>> know many mortgage companies have folded - not in trouble  and hence had
>> to cut
>> back - simply put out of business.  We know of 1 US  investment bank
>> that's
>> taken a big hit.  We know of at least 1 German bank  in
>> receivership.  Today we
>> learned the second largest bank in France is  stressed.  This is not
>> normal.
>> As I recall, most business cycles end  because of inventory imbalances -
>> this
>> is nothing like that, this is a financial  melt down.
>>
>> Welcome back!
>>
>> Dave
>>
>>
>>
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