I Don’t Like What I Hear
So Bush and Bernanke spoke yesterday (or is it earlier today? — jet-lagged here, currently on transit “somewhere”) but I don’t really like what they have to offer. Bernanke spoke that The Fed will do everything it can to save the financial industry, ahem, I mean credit crunch. Those speech in retrospect will make the stock market immature, by bailing out the capital market now The Fed and Bush made a clear message that if something bad happened someday in the future (be it because insane risk assessment, craaaaazy leverage, or other thing that is done by the hedge fund that forgot to hedge), they will be there for the rescue.
In effect, this will make our capital market (well, US market do has a global influence) spoiled and will make even riskier bets in the future. I choose any day now another 10% drop from where we are now (or yesterday, on Thursday) than a 20% jump because of the news conference.
I’m still going to day trade the market for the next couple of weeks although we are already break the 13300 Dow Jones bearish resistance line and only MA50 now holds yesterday’s rally (or today? Good God, I really lost the track of time), basically we already out of the July-August correction range. I’m going to keep an eye on the market every time I have an open connection or get access to CNBC/Bloomberg. Gotta catch a flight, see you guys later.
