Wish I Could Smile

I'm not smiling at the prospect that the Stock Market is up for the third day in a row. I should be grinning ear to ear as the Fed comes marching down the road with more rate cuts all designed to stop the runaway train. I have been told many times over the years that the Federal Reserve and other government agencies all had systems in place to keep us all out of harms way. Recession, yes we could have those, but never again anything as serious as the Great Depression.
I can't smile because I don't believe the talking heads when they say there is only a "correction" about to take place. There is a little dark humor in it all, as you notice "correction, recession, depression," all seem to rhyme. I used to think maybe the powers to be were right, until it was revealed there really is no money in the Social Security fund. We always knew there wouldn't be any for us when we got there anyway.
The problem as I see it, is we've never been immersed in a World Economy to the degree that we are today. I know that our own good old ingenuity might not be enough to save us. I have written before about the derivitive market and the investment's that they were a part of. I wrote yesterday that Greed was a big player in the subprime mess but one must also add leverage as a willing partner to this loan implosion debacle. Asking one dollar to support fifteen, is like asking three workers to support fifteen social security recipients. How is that going to work?
The first Boomer is elligible to draw their social security a little over a month from now. Bankers and credit markets will eventually be forced to reveal the truth in February and March 2008 when the fourth quarter figures come out. Do you think those numbers will be good? Those numbers will come at a time when the greatest amount of subprime loans will be scheduled to reset for next year. Do you think the price per barrel of oil will be down by then? Hope it doesn't get too cold up north this winter.
I should be smiling though because the early numbers for the holiday season are out and the stats are good. Merchants are allegedly happy, but did they spend more than usual? I didn't hear those numbers did you? The reason for this article is to warn you that the numbers are not good. The numbers will get worse. There is still time for you though to protect yourself and make the financial moves you need to make. We are only at the start of the game in the great unraveling mess yet to come.
The Fed will do it's best in reducing rates to prop us up. I feel it will be of little use. Can anyone say "JAPAN." If you are in a great job with good security, buy now. Use Government financing, because soon that will be your only option. If you get out there and warn your friends and family, and I can warn my friends and family, I will SMILE.