Thursday, October 9, 2008

Dow Down $678! When Will it Stop?

The Dow ended up being down $678 today a 7.33% decline, and went under $9000. I thought the "bailout bill" was going to save us? We've always been told the stock market is the place for you to put your retirement money into and over time you'll come out ahead. Even still today the "experts" say oh just stick it out it will come back up. Could you imagine if one of these "experts" said to sell everything and put it under your mattress until things get better? People would really go wild. There would probably be riots in the streets. So of course the "experts" are going to say stick it out, otherwise they would be out of work because we wouldn't need them anymore.

Well I'm sure it will come back up eventually, but how long will it take us to get back to just where we were before it all went to hell? I don't think we've seen the worst of it yet. More banks will fail, more businesses will go bankrupt, and our 401K's will continue to go down the drain.

So what caused all this? Our wonderful government did of course. They pressured the banks to loan to people who couldn't afford it because they wanted more low income people to enjoy the American dream of owning a house. Well owning a house isn't all it's cracked up to be. It is a very expensive thing to keep up with, and a huge responsibility. But for the long term seems to be a better investment than the stock market. When people started to question whether this excessive lending was going to be a problem they were shot down and accused of being racist. We have gotten so PC and so sensitive nowadays that they had to back of quick. Well now look at what we got.

So they same government that started this mess is going to save us? Sounds like a great idea.

This "expert" says don't sell your stocks because selling at a loss is stupid. It does create a nice buying opportunity as many companies are dirt cheap. But which one will be the next to fall? The worst isn't over. Put any new money in your mattress until we hit the bottom. Then buy on the way back up.

This election gives us a great opportunity to send a message. No matter who becomes the President, we need to concentrate on the Congress. Every seat in the House is up for election. Throw all these jerks out and vote for somebody new. If we do this then maybe they will start to listen to us. Now is the time we must do this. Do your research before you go and find out who the current person is, then vote the other way.

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