where to now, page-2

it's not in freefall

this rejection of the bailout was the best thing that could have happened - the markets will now correct sooner rather than years later

but as discussed elsewhere and as raised by a number of Congress men and woman, the current crisis is not as bad as what we experienced in the late 80s.

back then there was need to go and bailout anyone, and the problems in the 80s were quite simply worse

what we will have now is tight credit for some time which retards business growth and development

also with credit tight home lending and construction will be stalled - in this environment that should lead to a lowering of property prices because there will be plenty of stressed-out people with mortgages wanting to sell, but fewer buyers - so it becomes a buyers market so prices start to come down - so finally we will see the property bubble deflating

stock prices will take a hit while a number of people exit the market and while margin calls are made on margin lenders - but that's OK as most of my positions are for the superfund so I have plenty of time to watch share prices recover

but there will be some bargain stocks available - so if you have cash happy hunting

generally we are looking at lean times ahead

but mate the world is still spinning

summer is just around the corner

the beaches are still free

and the beer is still cheap during happy hour

as for me and the wife - we're grabbing our backpacks and going walking/bus/train adventure for 12 months overseas - by the time we get back most of this nonsense will have become just a memory

giddyup and good luck