Thanks to Warren Buffett again. The purchase of a stake in GS by Berkshire Hathaway is a great shot of confidence and this is done purely in the market by our greatest investor, Mr. Warren Buffett. See no evil bailout by using taxpayer money and no swallowing of the toxic debts and dirts!
It is clear that we must let the market decide and work things out now. Yes, if the evil bailout swallows all the toxic debts and dirts in Wall Street, that may create a big rally in the market. But the rally will only be very short-lived. The disaster that will follow such rally will include a loss of confidence in the US administration, the rule of law, the free market, the strength of the US dollar, the stability of the global economy, etc. Why? The evil bailout means that the people in the street will not be saved but only the devils in Wall Street, there is no fundamental strength to support the markets except government intervention, the free market is destroyed!
A loss of confidence in the US system will produce not only dire consequences but also irreparable damages to the development and progress of human civilization. Once the step is taken, we must ask what will the next step of the US administration? Will they impose currency exchange restrictions? Will they close trading of the stock exchange? Will they intervene in the stock market by making direct purchases and sales? Will they levy extra tax on foreign investors? Will they continue to nationalize US businesses (e.g. oil, financials, technology)? Will they punish any investors that they don't like? Yes, they may and they can do anything under the threats of recession, dire consequences of job losses, business breakdown, credit dry up, national security, etc. They can do everything by creating a panic so big that we will all go mad to hear them telling us.
But the truth is the market can work things out. Japan in buying and investing in US; China is ready to help; Singapore has been active and investing in US; everywhere in the world is prepared to give a hand. Indeed, once the devils in Wall Street are casted back to hell, normality may be restored and prudent, honest and genuine investors will return to the bond and stock markets.
Yes, I fully support curb on short selling but I don't approve the selective approach taken. The ban on short selling must apply to all stocks not just the Financials! If the devils can't short Financials, they will go and short other stocks. When the full ban is made, I have no doubt genuine investors can start investing again.
Please let the market decide and work things out now! The devils in Wall Street cannot be our rulers anymore!
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