Wow…the American stock market has been on a wild ride in the recent weeks or so. There were days where the dropped more than a few hundred points, and dipped below the 9,000 point mark. Very, scary stuff. With the U.S needing more than $700 billion of tax payers money to bail these financial companies and banks out of trouble, it leaves a lot of questions unanswered.
Here are some of the questions and comments that I have:
1. So the U.S government is taking U.S citizens tax money and handing the money to the financial companies and banks. I have a feeling that a good portion of that money is going to line the pockets of the highly paid finance executives, and not to fix the real
problem. Just look at recent announcements of huge bonuses and high salaries for bank executives.
2.Does any part of this bail-out plan, really help the middle class and poor?
The answer here of course is NO.
3.Did you know that this whole financial mess was the doing of the exact same finance companies and banks that is now needing the help. This was basically, a result of greed, watch the documentary “Maxed Out”.
4.With the way,the markets are going now it may, be a long while before it recovers (2 or more years)
, however if you have a long time horizon for investing in stocks, I would probably start buying some quality company by year end.
5. The American government is printing money like no tomorrow, creating a huge supply of U.S Dollars….so when will this huge supply reflect into lower price for the U.S currency?
This may take a year of so, it is artificially inflated right now, but I think at a later time the American dollar will tumble.
It would be interesting to see how all this plays out. The U.S ecomony affects the world, and being in Canada, we feel directly the effects of less consumer and corporate demand / spending when the U.S economy is in bad shape.
Jobs are still being loss, my department just laid off 6 people, and job hiring won’t be picking up any time soon. Also, American companies just aren’t buying…80% of my companies business is from the United States and the phones in our sales department have not been ringing in months. Scary stuff.
Bookmark at:
StumbleUpon | Digg | Del.icio.us | Dzone | Newsvine | Spurl | Simpy | Furl | Reddit | Yahoo! MyWeb
