posted on Oct, 8 2008 @ 02:11 PM
Originally posted by statickitt3n
It seems today that the stock market is starting to make a fairly nice rebound. Just maybe, we've seen the worst of the drops, and things will start
to go up, and I can relax a bit and not be so on the edge anymore.
here's wishing you better days.....
we have to look deeper into Why the stock market has not caved--->
like it has over the last several days.
At around 4am ET, the global cabal of central banks announced a world-wide decrease of .5% of the loan rate to their member banks.
Then the US announced that the Treasury & Federal Reserve would
buy commercial short-term debt paper...
that equates to the govt buying new debt of private companies...
and guaranteeing all short term loans ...
so immediately,
some investors jumped at the chance to invest in something that will not automatically lose value, (like all stocks and commercial bonds have been
doing for the last week).
A Something to invest in, that pays more than Government Treasuries, or in a 'iffy' Something like Gold & precious metals....
the investors have a pretty big chunk of 'sure-fire', 'guaranteed profit' financial instuments to put their money in---without a likely loss like
one would have in an actual 'Free Market".
If the Fed & Treasury & the SEC keep changing the rules, and provide guaranteed prices on the now 'nationalized' economy...then the markets will
continue to draw money/capital into it--->
but you have to realize that
eventually the government can;'t guarantee every business & every private debt they want to sell so as to keep
the company in business.
Socialism is a constricting funnel....
have a nice day,
thanks for your time