Thursday, October 2, 2008

Game Over - Time to play with New Rules

I can't imagine what's really going on. It makes no sense for the Treasury to be given $700B to give back to the companies that caused the financial problem in the first place. Worse, it makes no sense to flood the markets with more liquidity when the $1.5 trillion that's already been injected has accomplished nothing. It makes no sense to relax mark-to-market since that's a primary component that caused this crisis. And, it makes no sense how many elected and non-elected officials are ready to burn the constitution, apparently without thinking through the long term consequences.

So, what's really going on here. Is it simply political stupidity run rampant during an election year? Unelected officials trying to make a name for themselves in history? I dunno. But its time to try to figure it out. Otherwise we're all going broke.

It makes no sense that so many of the media experts who always preach "Don't Panic" whenever the financial markets drop, are causing panic with their continuous Armageddon reports. These reports all seem to stem from various politician's (all of whom support the "rescue not bailout" bill) repeating the same, unsubstantiated stories of "people" who can't get credit.

I'm not a "conspiracy theory" guy, but somebody is obviously pushing this. Who gains from this? Is anybody in a position of power profiting off of this now. Are they positioned to profit in the event of a recession or depression. We've got to figure out what the actual agenda is here and who's pushing it.

Or, we at least have to figure out how to profit by it also.

Warren Buffet will profit, but only after a recovery begins. The investments he's made over the last few days have positioned him to make a fortune over time, but not in the short term. He has the money to be patient and wait for Goldman's and GE to recover. Is that one way to play the new rules? Possibly. It depends how these investments have been structured in relation to Berkshire Hathaway. Are they part of the BRK.A and BRK.b.

Gotta go for now. I'll add more to this later.