If you think the credit crisis is bad now, wait and see how it looks when unemployment is at 5.5%.
I know many of you, stubbornly, believe the Fed will somehow waive its magic money stick and everything will be alright.
It is natural for the economy to go into recession, following years of uninterrupted growth. Using band aid solutions to keep the party going will only exacerbate problems in the future.
While it’s true, I believe the Fed should cut rates aggressively, down to 3% or lower; it won’t help the economy or the stock market until 2009.
Plus, by then, we will have a newly elected President, who may have an interest in fucking Wall Streeters.
Look you, the signs are everywhere. Just look at RUTH. Even fat fuckers are staying home, opting not to clog their arteries in public.
The Fed can’t help the fat guy, who will be paying $4 a gallon for gasoline by April, pay for $200 dinners at RUTH or even $20 snacks at WEN.
What to do now?
Position for recession. However, understand, along the way, there will be many false rallies—particularly when the Fed cuts rates.
Fade those spikes.
Right now, [[FXP]] is cheap, mainly due to a gap up in the shares of PTR. Should PTR weaken throughout the day, FXP will print $82, for shizzle.Comments »