hpski

Bernanke: Economic Growth Won't Last

Two things:

1. Don't fight the Fed - look for oversold situations in great companies immersing themselves in global markets.
2. Every day I get unsolicited mail from banks, mortgage companies, begging me to refinance, open a ELC, write teaser rate checks against CC accounts, car lease specials, etc. I haven't had "earned income" for 2 years. My take on this, merged with watching GE's CEO on Charlie Rose last night, is that there is still plenty of liquidity - the "credit crisis' is basically the ugly ducklings in the secondary mortgage security market being thrown out of the nest.

The 'Plunge Protection Team' Working Overtime: A Play-By-Play

So, what your excellent analysis states, in essence; the power brokers in Wash. D.C., who basically work for the "serious old, low profile money" (think Carlisle Group, Council on Foreign Relations, Heritage Foundation members ,etc.) will use public funds to soften landings, and smooth out spikes in the major financial indexes. If my interpretation is correct, then buying stocks that get whacked during one or two day DJIA meltdowns, e.g., well managed companies that don't have much reliance on short term exchange rates & money supply is a way to benefit from the current volatility?