Stocks Plunge On The Failure Of Washington DC To Come Together On A Bailout: A Silver Lining?

Panic struck Wall Street as many are fearing a complete meltdown of the nation’s banking system.  The media has done a fabulous job, aided by President Bush’s plea to the American people to strike fear across this nation.  However, many on Main Street feel a bailout only benefits Wall Street rather than Main Street.  They can not be more right, rather than help many to stay in homes they would rather stick a bandaid on the issue.  To fix this mess, you need to assist the housing market from further decline, KEEP PEOPLE IN THEIR HOMES and still paying.  That is renegotiate princple and interest payments.  You solve defaults, foreclosures and those mortgages become liquid again.  The stock market is simply pricing in a crash of this nation’s banking system.  It is causing  weak holders to get out of the market, cleansing the system of waste.

If you have been reading and followed along with my action you are in cash and avoiding the meltdown.  Jim Cramer continues to urge people to buy this market.  He has been completely wrong and shows you that picking bottoms is a fool’s game.  We do not have the environment to get long, too much uncertainty, and no charts.  Unfortunately, the mess created by Wall Street will take some time to work itself out.  It could be a year or 4 years at this time no one knows.  I personally believe we are going to see a few years of choppy trading much like what we saw in the Dow 1938 through 1942.  It is no time to be a hero in this market, stay clear of the locomotive headed your way.

We still have our former leaders to crack wide open:  Apple (AAPL), Google (GOOG), Potash (POT), Mosaic (MOS), Monsanto (MON), Agrium (AGU), Research In Motion (RIMM), Baidu (BIDU).  This will take time but we will get through this.  We will prevail.  Just let time work, let it work!

Best of Luck

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