taxmarc

Warren Buffett Is Wrong on Fed Intervention in Bear Stearns

I believe there are many in the investment community who agree with Mr. Kim's analysis and know that the action by the Federal Reserve is nothing more then a "fix" to a problem they created after the dot com bust in 2000 when invetors lost trillions of dollars and deflation was looming on the horizon. The big difference now is there are many individuals who are getting ready to retire and are going to be dependent on their mutual fund equity money for that retirement. So the Fed has a vested interest in keeping the markets "healthy" even though they are wrought with "cancer". Having said that and knowing the Fed is in that posture what do you do? Do you stay out of the market completely by putting your (and my) 401(k) money in money market funds losing the gains from a manipulated stock market or take the risk that the Fed will keep things "healthy" for the time being as the largest group of Americans get ready to retire?