Banks in England are now forced to merge. Morgan Stanley and Wachovia are looking at merger. It seems there is not enough money in the US to fix it. Maybe we need over sea intervention by our trade partners, oil producers and China. They have the reserves that can help. Our government needs to court them in.
Donald Trump said something to the effect to just get up in the morning and do what you do. He also said he doesn't own stocks. He likes investing into hard assets like real estate. It is not just paper and it won't disappear.
Oil bounced as I felt it would in my blog the past 2 days, due to the issue of treasury bills. Basically the government is print dollars. This cause oil and gold to go up. Gold was also due to fear and the devaluation of the dollar.
Any ideas, what do you think. So where do we go from here?
Richard
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Richard,
Great question - not sure anyone knows the answers. It certainly is a good time for investors to reflect and evaluate the stocks vs real estate. As discussed with us in the past, real estate could greatly benefit from sector rotation for risk averse investors and start the cycle over again !
At the end of the day, the banks are going through their cleansing as well... I think the market will take care of itself and the consolidation will be a necessary item (evil for stockholders ? ) as the premiums will be light, or perhaps takeunders ?
I think the FED made a mistake by not lowering rates this week - hopefully they will catch up in the next couple of weeks with a 25 to 50 basis point cut.
Where do you think we go from here ?
Christopher and Stephanie
I think that if don't have a large intervention soon, i.e major infusion of outside capital via purchases or investment, we will acceletate in a 3rd wave decline considerably lower then we are today.
Investors and institution need to see that the money is flowing in.
Best,
Richard