Tuesday, March 3, 2009

Is it time to bring in a Wall Street guru?

Where is the ‘confidence’ of this administration?
There is long term strategy and there is tactics. Stock market is about both. The problem this new administration doesn’t get is a simple math problem: you can’t borrow your way out of problems. Sooner or later you have to create ‘wealth.’ The numbers these people are throwing around are staggering. Yet, none of them is capable to instill the confidence in the markets that they are in control of the situation, and that they will turn this thing around. They don’t seem to walk the walk..On the one hand they keep saying we have to borrow these huge amounts of monies.. on the other hand, they claim that they can’t monitor the stock market on a daily basis. Go figure.. where do you guys think that money is coming from?

Why can't you keep an eye on the market? It is time to bring in a Wall Street guru. You have to keep an eye on the market, because you don’t live in a lab.
The math that most investors know by now is pretty simple: if the stock goes down from $10/share to $1/share that is a 90% drop. But to bring it back to $10/share the market would need a 900% jump.
So take care of the long-term strategy while taking care of the stock market. Stop pretending that things will take care of themselves.. and Start giving this stock market the confidence that you are doing the right thing. The markets, along with all its stake holders are demanding it.

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