Thursday, February 28, 2008

Government Bailout?

It has been a few months since I last posted anything about the markets. As I have said in the past, government intervention will be the main stimulus that will insulate the markets from major declines. Deleveraging is very painful and we are in the middle of repricing risk. That is why anyone you talk to that in the credit/real estate markets believe that a depression is on the horizon. History does rhyme but it never happens excatley the same. I would note that Wall St. has become to sophisticated for their own good. Structured finance might be the culprit but this was brought on by greed from Brokers, Appraissers and people in general. This will be the largest worldwide bailout in our worlds history.