Posted by
Bull 67 on Friday, October 03, 2008 9:07:54 AM
Look at this morning's 'breaking news' headline from Fox Business: Payrolls Fall By 159,000 In September, Worst In 5 Years.
Remember the headlines five years ago when payrolls dropped by 159,000? I certainly don't. No one freaked out then. Or how about this line from the same article: An alternative measure of unemployment that includes discouraged workers rose from 10.7% to 11%, the highest since April 1994. Remember the dark days of 1994? What? You say 1994 was a good year? A prosperous year? Yea, I remember things were pretty good back then. So what’s so bad about being the 'the highest unemployment since 1994?' Big deal!
I believe things will get rough during the credit crisis, but I'm starting to doubt the predictions of doom. I think the economy will be closer to 1979, not 1929. Why? Because right now the international markets are correcting at much higher speeds than we had in 1929 or 1979 due to electronic banking. No wants to lose money and no one wants to hand out bad loans anymore, but everyone still wants to make money. No panic means no depression. I think the bailout is congressional panic.
And I damn tired of giving a flip if the DOW is down or up from day to day. And I'm having serious doubts about the need for ANY bailout plan. I say we take our lumps, let the markets correct, we learn our lessons, and in 3-5 years we'll make it through this mess. I have sneaking suspicion the bailout cure will be worse than the disease.