This morning I turned on my XM radio and tuned in to a few news casts. Flipping around the news channels I stopped to listen to Neil Cavuto for a moment. I hadn’t done that in a long time.
Over the summer I’d take a listen to the Saturday and Sunday financial shows and I finally had to stop. So many cheery guests saying everything is good. Many people saying it’s time to invest in real estate. Many saying the banks were very good buys. In my opinion at the time, many people with blinders on shilling their favorite stocks.
I had to stop listening. It got me hot under the collar.
This morning I woke up to the following headline from Bloomberg: “Rescue plan seeks $700B to buy bad mortgages.” I’m so confused. Several months ago all the experts told me the worst is over and I needed to be fully invested. What went wrong?
There’s a simple answer to that question. The so called experts have a lot invested in not being honest. Half the folks on these shows have books out on the markets, how to make your fortune, house flipping, etc. Markets going up are good, markets going down are bad.
Markets going up or down are neutral. They’re supposed to be indicators of the health of companies and their valuation. But since the 90’s we’ve treated the market like a money machine. It always goes up, even if a company produces nothing.
Remember, right before the initial market tanking at the start of this new century folks on CNBC, FOX, NBC, etc. were all saying invest, invest, invest. Can you really trust these guys now as they point out that Fannie and Freddie have been in trouble for a while. They didn’t discuss it at all mere months ago, and anyone who could read actually knew what was coming.
$700 Billion gang. Raising our debt limit to $11.3 Trillion to do it. For those pointing out the big expenditures by the governement, this one is huge and dwarfs almost everything else!
Makes me wish I had a mortgage to default on! 😉 Now we’re going to get to pay for all this mal-investment. Wish we had some news sources that actually do tell it like it is. For me, I’ll keep reading Prudent Bear every day. Seems to be my most credible source.