So just when you think that the Fed has grown some balls and stood up to the crack addicts on Wall Street (yeah, right) we hear rumors of another inter-meeting discount rate cut. Maybe by week's end. What an absolute joke our Fed is. The market didn't like dosage so less than 12 hours later we're already demanding more crack. Market participants are DEMANDING that investing be RISK-FREE. There are no free markets. These bulls are all out blaming the Fed for their losses yesterday. Again, what a joke. If you lose money in the market the only one to blame is yourself. Not the Fed, not some conspiracy, not the sun the moon and the stars.
The powers that be will pull out all the stops to keep this market elevated. Every crack in the dam will be met with another bailout attempt. There are no free markets. Comrade Bernanke will just make shit up if he has to. How about we buy up all the bad debt at par? Comrade Paulson will rewrite all the rules. Why don't we just throw out 200 years of contract law and rewrite contracts by government decree? These guys will purposely screw the short sellers.
Hence, money management will be key for bulls and bears alike. I can't stress enough how dangerous of an environment this has become for all market participants.
I, for one, still don't see how this can end well. There are delicious shorting opportunities everywhere but today may belong to the bulls as we look to retrace some of yesterday's big downdraft. I'm net short again and would look to get more aggressive if the bulls can't keep the ball.
Good luck folks. Be careful out there.
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