Monday night 10pm

Monday night 10pm

777

Early last week congress rejected a 700 Billion bailout package and as a result the dow dropped an additional 400 points ending the day down a record 777 points.

What really happened?

A group of about 30 hedge fund manages who give huge amounts of money to political campaigns and introduce people in congress to people who can give lots made a few phone calls.

The middle class investors do not short stocks (when the stock goes down people make $) these top hedge funds do.

The money managers gave their friends in congress a call and said “don’t pass this bill the first time” then proceeded to place a few short bets.
When Congress does pass the bill they will know ahead of time and switch their bets.

Moral of the story: never buy stock

Unless you $10,000+ to perform the proper due diligence on a company you are sure to lose.

One of 2 results in inevitable:

1. It is a bad company and the stock goes down
2. It is a good company so a private equity (or larger public) firm buys it out and you have earned a moderate return but you are back to square one.

Stick with mutual funds until you have bigger $ to invest.

The old invest for the long term is as stone age as cell phone that don’t get email.


The end of the stock market:

10 years from now 2018 the stock market won’t exist. Increased security regulations and the growing disparity in wealth are making private investments more attractive.

Eventually individuals (or families, winners of the genetic lottery) will either have serious $ to invest or practically no money at all.

Which leads to the last and most important point of the evening:

The disparity in wealth in the United States continues to grow and will continue to grow until our country breaks into a revolution. The poorest have no reason to support our current system; denied of health care and education. A future and a family behind bars.

As long as the wealth distribution in this country grows we our being lead to a revolution, my hope for November is the candidate who will slow the disparity.

Blake