08/22/2008
Unless you’ve been under a rock, you should know how close Wall Street got from a financial collapse last week. WOW it was a roller coaster ride… Anyways, we are in some uncharted waters that no one has ever seen. We just had Paulson, Bernanke, and company put together a 700 Billion Dollar program ($700,000,000,000 just in case you can’t see the magnitude of the number). I’ll give my humble opinion later but we have a huge problem… our country is broke!!! But we will print money. Bet my left kidney on this… I’ll post an in-depth analysis on what to expect later… BUT here’s my call on what’s going to happen…
- This will pass… no way, no how… the music is playing and this government will pass this. The people are too dumb to let it stop it but really… is it too UGLY to not let it pass.
- Fannie and Freddie will go under… and my bet is… this is probably the #1 reason why “they” are pushing it so hard.
- Oil prices will sky-rocket since the price of oil is pegged with USD (USD down = Oil UP)… but the government will bring it back down
- Investors are on the side line and fear is every where… the government will put a program in to “pump up” the market. Let’s say maybe a tax credit? Investor incentive’s(I’m talking about hedge funds, not mom and pop house flippers)
- Some other government entity will come up to “control” the real estate market… this can be bank owned or government control (I’m referring to the S&L crises)
- New administration WILL bail out the banks (Yes, and it will probably be Obama -> I’m voting Ron Paul – and yes I changed parties)… while the small banks go under.
We are seeing history in the making…
Hope for the best, prepare for the worse!!!
Go Make that money.
Tags: 700 billion bail out, coganomics, jeff coga
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