OK, let’s ignore the politics. If Democrats want to pass this they can, they have the majority. Period. Republican’s are powerless and will not block a vote. Anything else is just games.
So, will it pass? Yes. As the market drops, Main St. will feel the pain and the public opinion polls will turn.
When that happens, everything let’s loose and we rally. In the meantime you have GE trading at decade lows yielding 5%, Dow Chemical at 5 year lows yielding 5.5% and the list goes on.
The point is you have people panicking out there. Panic leads to selling en mass and that means bargain basement prices.
Think about it. we have heard daily for 2 weeks now that something has to get done TODAY or we risk armageddon. Yet, nothing has been done, Wachovia (WB) and Washington Mutual (WM) were absorbed by Citi (C) and JP Morgan (JPM) respectively i na very orderly manner. No deposits were lost and there was no run on the bank when the news was announced. An 8% drop in the DOW (.DJI) today isn’t even in the top 5 worst days.
There are deals out there for the patient investor. Pick strong companies with low debt and strong balance sheets. The yield alone out there have not been seen in a long time..
Something will get done, just pick at the bargains until it does..
Disclosure (“none” means no position):Long GE,Dow,C, none
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2 replies on “Where is Armageddon?”
If they’re panicking now, what are they going to be doing at Dow 7000? How about Dow 5000? Are you naive enough to think we’re not going to go careening through the 2002 lows?
we will go through it but it will be painful.
I have already seeing at my business that my credit lines backed by receivables have been reduced and my covenants got tighter. because of this I had to cancel a project i am working on and I am considering reducing my staff, as the projected revenues from the project will not come.
I hope you are right but looking at my business and my reduced access to credit, I am not agreeing with you.