A Glimpse Into The Future

Here is a graphic depicting the volatility in the markets on Monday:

Graphic courtesy of the WSJ

One thing though: the dollar didn’t weaken due to fears that the U.S. will have to effectively print more money, it weakened because the U.S. IS going to have to print more money.

While I think the markets will stabilize even if this ill-fated bailout is pushed through, understand that the economic consequences will be severe. Mr. Paulson makes it sound as if you can push through a plan like this without paying a heavy price in terms of the weakening dollar and skyrocketing commodities prices.

Mind you, we’re going to pay huge penalties for this plan even if it’s wildly successful, but since anyone with common sense knows that the plan is a god awful idea and won’t succeed as planned….

You can read more about Monday’s volatility here.

Disclosure: at the time of publishing the author didn’t own a position in any of the companies mentioned in this article; the ideas expressed are solely the opinions of the author and shouldn’t be viewed as financial or investment advice.

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