NO Rate Cut and AIG Bailout is Astounding

Wow, once again, the FED, which is really a private bank, and no more Federal the Federal Express, comes to the rescue!! Holy crap, a $85 Billion dollar loan for 2 years. Good god. What if a bunch of us regular citizens said maybe 10% said, "Look, we made some bad decisions in all our business decisions the last few months, we were too risky." Can you loan us $3000 each? Yeah right, wouldn't happen. ITS the same amount of bailout.

INSTEAD, they will concentrate it all to a rich executives and sell it to us as "Necessary to upkeep the financial system". Hows that?? The economy is run 60% by consumers, and I don't remember needing any services from AIG. I need food and I need shelter. The bailout is to rescue the millionaires who created financial engineering. What a joke. Let is fail and teach those greedy bastards a lesson, that's what the LAW of Economics is all about. We don't share in their profits, so why should we share in their losses?

I am not the only one who feels like this, take it from the 30 analysts from www.ElliotWave.com, a truly logical, fundamental, macro-economic market analysis company. Directly quoted from the Elliot Wave THEORIST, Sep. 2008 edition:

"Wasn't the bailout necessary to save the financial system? Government officials and newspaper editorials even those from skeptical writers have been unanimous in claiming that a bailout no matter how unpleasant was "necessary." But this is nonsense. The only thing that has changed the only thing the government can ever change is who pays. A week ago people on the hook were speculators who voluntarily took responsibility for losses when they grabbed the opportunity for gains. In fact they have already booked years of gains in the form of interest payments along the way. Now those on the hook are people who had nothing to do with the transactions in the first place. This bailout will drain money from people who are solvent and thereby damage the financial system more in the long run. Producers and savers are the very people upon whom recoveries depend. By shifting the losses onto them the government has now assured the ultimate devastation of the entire financial system. The bailout is not just unnecessary it is another disaster."

I couldn't have said it better. You now have front seat viewing of the greatest financial calamity since or the great depression. Since things are leveraged at least 10x greater then the 1920's and the population hasn't grown that much, look for a depression 3 to 5x as bad. OF course that's in real terms, as the printing presses may cause the dollar may be inflated to 2 to 300 percent of today's values.

All that on top of no rate cut? I can't believe it. Finally, no more drugs for the needy. But to watch the FED's plunge protection team turn markets around after 2:15, from 100 down to 100 up in 10 minutes is astounding. Collective aggregate reasoning included, no one changes their mind that fast. About no other way to explain it. More PPT evidence at another time.

Believe it or not, I am positive person. I just want the truth and realism. Economics is fascinating, but was even more fascinating is everyone's denial of the perils and threats at hand. Part of it is no one wants to believe that their BMW's and cushiony jobs are at risk. Its going to be bitter sweet for those who saw it coming.

All the best. Hope your preparations get you where you need to be. The first thing is raise cash!

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