The Republicans have fought (and rightfully so) against socialism trends in America, whether it be health care, social security, education, or other typical government socialism trends. Yet America has announced it will buy stock in top 9 banks to the tune of 250 Billion dollars, and its great news!
If my memory serves me correctly, the capitalists have stated for decades that socialism depresses corporate profits and suppresses capitalist competition, and yet now its great news? Look at it for what it is, a desperation move to shore up public trust WITHOUT fixing accounting to restore trust.
And Europe trumps the USA for bailout effort, putting 2.3 Trillion dollars on the line to back European banks.
UPDATE: The US Central bank is offering "UNLIMITED" dollars to to the European Central Bank, Bank of England and Swiss National Bank. Previous cap was 620 Billion dollars. Does anyone else see a trend here? Governments around the world are accepting the risk previously negotiated by banks and corporations. Does anyone know what taking that type of risk on may yield?
If you are "long" stocks, this is yet another, and possibly final time to get out of the positions. Wait until the DJIA hits 10,000 and sell 25% of your long assets to reduce the exposure to risk. If the US stock market claws it's way back to 11,000, do your portfolio a favor and take the gift, get out of the market before Dow 6,500 becomes a reality.
Please read my post on when to buy into the market and when to be out of the market by clicking here.