It has been a little over a year since I first wrote about “feeling bearish“.
original illustration – graphite pencil – derwent graphic – August 2007
August 2, 2007 to be exact. The Dow closed that day at 13,463 points. I had been reading up on Housing Bubble blogs hoping to get non-biased opinions on where they thought the economy was headed. Little did I realize that just over a year later the Great Unraveling would explode.
Today, the Dow closed at 8,175. Both the Bears and Bulls have been on a crazy ride, and will continue to be tugged and dragged along until something significant happens.
CLICK IMAGE for larger view – graphite pencil – derwent graphic
Can the FED really repair this mess?
With the Federal Reserve (the FED) at the controls, confidence and fear will be competing factors. Add a little hesitation to lend and borrow and things will just get uglier.
You can’t change the channel fast enough to try and evade the pundits arguing who caused it. There appears to be enough blame to go around. I do not claim to fully understand the true magnitude of what $750 billion can do let alone what that much money even looks like.
All I do know is that somebody is getting that bailout from the FED. As a conservative saver, I feel like I’m on the hook to be paying that huge debt down the road.
Thanks guys!
I feel the same way man. We’ll be total slaves to the Fed as a country. How many millions of years will it take to pay for the bailout?
…and seriously, where is this money coming from? It’s all electronic and doesn’t exist but we’re getting the shorter end of the stick… sucks.