Stock market indexes, in early Sunday evening trading, have dipped lower. The Dow is down 30 points, which isn't huge, but is surprising for early Sunday evening trading.
Is this what we should expect following the latest bail-out from Washington? Now that the government has unlimited taxpayer funds to buy shares of Fannie and Freddie, under Treasury Secretary Paulson's plan, shouldn't we have expected the opposite from investors when the futures markets reopened Sunday evening? Is there something we should learn from this, that global investors are getting early jitters from the latest government rescue plan? What kind of new precedent it this, when the government is authorized to spend unlimited amounts of cash from the Federal Treasury to buy the stock of private corporations that have gone astray? Has anyone other than me lost count how many bail-outs and rescues we've seen since the credit crunch began one year ago? They seem to be coming more quickly and more frequently with every week that passes, don't they? The Founders must be crying in their graves for the Republic that they created!
Idea: If I owned shares of Fannie and Freddie, I would use this as my chance to use the government's unlimited buying power to dump my shares at an artificially-elevated price. Every time the Treasury buys shares of the two, once prices started to drop again, I'd be selling for every penny I could get. After all, the elected representatives of the people have decided to place this market risk onto the backs of hard-working Americans, so why not let them accept that risk?
Who knows? I might even use the government's intervention to drive the share prices of Fannie and Freddie higher as a way to ride an uptrend in the prices, dumping them once the prices start to consolidate or collapse. A few days ago, I mentioned that it is the job of a trader to find a trend, and then ride that trend in whichever direction it goes. Why not ride the trend of unlimited funds to drive share prices higher for these two stocks?
Is this what we should expect following the latest bail-out from Washington? Now that the government has unlimited taxpayer funds to buy shares of Fannie and Freddie, under Treasury Secretary Paulson's plan, shouldn't we have expected the opposite from investors when the futures markets reopened Sunday evening? Is there something we should learn from this, that global investors are getting early jitters from the latest government rescue plan? What kind of new precedent it this, when the government is authorized to spend unlimited amounts of cash from the Federal Treasury to buy the stock of private corporations that have gone astray? Has anyone other than me lost count how many bail-outs and rescues we've seen since the credit crunch began one year ago? They seem to be coming more quickly and more frequently with every week that passes, don't they? The Founders must be crying in their graves for the Republic that they created!
Idea: If I owned shares of Fannie and Freddie, I would use this as my chance to use the government's unlimited buying power to dump my shares at an artificially-elevated price. Every time the Treasury buys shares of the two, once prices started to drop again, I'd be selling for every penny I could get. After all, the elected representatives of the people have decided to place this market risk onto the backs of hard-working Americans, so why not let them accept that risk?
Who knows? I might even use the government's intervention to drive the share prices of Fannie and Freddie higher as a way to ride an uptrend in the prices, dumping them once the prices start to consolidate or collapse. A few days ago, I mentioned that it is the job of a trader to find a trend, and then ride that trend in whichever direction it goes. Why not ride the trend of unlimited funds to drive share prices higher for these two stocks?
