Carl Spackler

Weekly Street Sentiment: Sell-Side Says the Bailout Will Help

Turn out the lights, the party's over! This market is cooked. Markets like to turn around round numbers and 10,000 in the Dow is just around the corner. We will see Dow 9999 and S&P 1000 before December. Only way to get the market moving forward is to discount the price to attractive levels. Does anyone really think that this FED program will turn everything around? Didn't Paulson say earlier in the month that the economy will only stabilize when real estate prices stabilize. Well, how many people are going to go out and buyt real estate next month because to this bill? I'll tell you how many - none! The FED should have kept its powder dry. Only lower real estate prices will encourage buyers and that will become a reality despite the FED's efforts. Buyers now recognize the true value of real estate and a little FED trickery will not change their perception. The faster they let prices fall, the quicker we can move on to better times. The FED is trying to build the levees up as the hurricane comes to shore - this strategy worked wonders in New Orleans.