Ah, very little to post about today. As we all know, yesterday was a painfully naseuous day on Wall Street and D.C. We’re going to have a few more of those days.
Knowing where we are is important. Having your own private plan is important. But you don’t have to stay glued to CNBC, FOX News, or listen to the radio all day. Live your life, the rest will fall into place, even if it’s not a place we like.
With or without the bailout we’re going to have issues. That’s the bottom line. Spend wisely, spend on needed items, and skip the frivolous stuff. That’s what I’m doing.
This morning I read Bill Fleckenstein again. His latest column addresses the fact that short selling has been banned. You can’t bet against bad companies now. Short sellers are “bad”. Once again, the market going up or down isn’t bad, it’s a function of the markets, that’s all. On the second page of the article there was a gem of wisdom that I couldn’t resist.
The bottom line is that the government has decided it doesn’t like where the prices of houses are, where the prices of mortgage-related debt securities are, where the prices of commodities are and where certain stock prices are, so it has elected to change them all by fiat. It won’t work, and one of these days, the bond market will be absolutely shattered.
Now, he’s speaking about the current crisis in this quote. But here’s the fun thing. This is exactly what’s been going on for well over a decade. Markets get closed on bad news, the government intervenes in the home loan market, etc. And this is the behavior that has led us to this point. If you had to sum up the whole issue in a short note, the above paragraph would fit perfectly. Well, it worked for me at least.
On a personal note: My family is on their way to Arizona. The great road trip of their lives (they’ve never been West on a road trip). I sincerely hope that things get worked out so we can have a softer landing and my family can enjoy what most likely will be their first and last big road trip. At least, last for a long time to come.