Wednesday, October 15, 2008

Dramatic Opening, But Then...

Years ago Warren Buffet explained it all, and of course, we were searching for WMD in Iraq, bringing democracy to the world (they didn't ask), and didn't listen.

http://www.marketwatch.com/news/story/derivatives-new-ticking-time-bomb/story.aspx?guid=%7BB9E54A5D%2D4796%2D4D0D%2DAC9E%2DD9124B59D436%7D&dist=TNMostRead

For years Floyd has ranted on his soapbox on:

1. Deficit spending creates an aura of debt is okay. We did this to ourselves.

2. It appeared to Floyd in the past 8 years that the multinational corporations, banks, oil industry, and Wall Street all seemed to be massively benefiting, even while unemployment was increasing, as the only jobs being found were in housing. Floyd believes our unemployment rate is almost DOUBLE what our government facts say. My rants have been around "the hat trick" that has occurred, no bid contracts, privatizing of social security (can you imagine?), and borrowing money from Communist China,now up to a trillion dollars.

3. Keynesian, or trickle down economics, began with Reagan (actually Coolidge) and makes Americans believe that tax cuts are the answer, when the real tax increases take place around the tax decreases, and America foolishly believes they are "saving money" from the Government. We need more irreverence.

Cash derivatives, without regulation, BEGAN in the U.S. and we are 80% of the market worldwide. WE created this financial crisis. I continue to predict our end cost to buying out this debacle will end at over 2 trillion.

Do NOT believe a single number the government is giving you. It will change by the hour, and all the whoopla on what the "house voted" through will be irrelevant, as we find more ways to now nationalize and internationalize money, because of our own stupidity.

The market yesterday moved up at opening dramatically, in a bit more euphoria, allowing put buyers to take entry, and to profit on the initial downturn after the opening gap. Our traders made entry to the November550C at below prior day close, and could have sold for up to 1.00 per contract profits, twice. We continue to hold this issue.

As you compare "Mavericks John and Sarah" and Obama, ask yourself who is running the most organized and effective campaign, as these are indicators of how they will run the country. Vote smartly.

Don't repeat the same mistakes we've made for 8 years. Bush and neocons destroyed this nation's wealth. Don't live in FEAR again. Certainly citizenry are guilty here, we all are, but is from the top that we are led. Place blame fairly.

The market went to highs Tuesday of 9834, above our first Dow projected top, but quickly retreated to 9045 before closing just slightly down.

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