This week is one for the History books. You are seeing nothing less than the death of the “free market”. You are, in real time, watching this country move towards true socialism. I am not commenting on where this is the right or wrong direction. I am simply pointing out that it IS happening! It is not the banks that are failing or flailing mind you. It is the very system itself that has failed. The very basic concept of banking itself is what we are seeing fail.
These bailouts WILL continue! The airline and auto industries are waiting right outside the door to Congress for their turn at all these bailouts, as they are not so stupid as to not stick their hand out when the government is not afraid to print and distribute money at the tax payers’ expense. Do not be fooled by the talking heads when they tell you that this will cost the tax payer little. This will and already is costing the tax payers more than anything this country has ever faced in its history. The “non-existent” plunge protection team is working overtime, you can be sure, and hopefully they can slow this down but the key word there is DOWN. We will see continued deleveraging in the weeks and months ahead and that will continue to wear on this market.
Odom & Frey Futures & Forex
toll free: 866.636.6378