Strange Times
September 10, 2008
– Comments (7)
Think about this for a second......NOBODY KNOWS what to believe any more in the financial markets.
We have a treasury secretary that tells us one week the the two largest companies in the world are well capitalized on the next week put them into conservetership. We have CEOs telling us their banks don't neet capital only to raise billions a few hours later and dilute current shareholders.
We are told that the economy is fundementally strong while foreclosures are at record levels, the PE of the DOW is nil, unemployment is skyrocketing, and businees are failing while commericial vacancies are skyrocketing.
Some say buy and others say sell. Some say inflation and others say deflation. In the end, no one really knows because no one really can trust much of anything anymore.
Trust has basically broken down......and this is what they call Moral Hazard.
So now, much of the world is "trusting" its finanicial system is solvent....or that government will step in and save them.....or this or that....but in the end do we really know anything when our treasury secretary is willing to testify in front of congress and say one thing and a few weeks later do the opposite????
What does this mean for the future....who the hell knows.....but we do know one thing......without knowing the truth....we really know nothing.
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