BEAR DEAD PART 2 GOV GETS BIGGER BOLDER

OMG I guess they did it ......and they didn't want any of us on for ride....2 day turnaround of 1,000 pts! OMG!!!! BIG LESSON here......VIX 40 BET THE FARM...well at least the shithouse

US FINANCIAL FIX?
"government plan to rescue banks from toxic mortgage debt brought hope of a letup in the world's worst financial crisis in decades."

"Investors also took heart from word that the U.S. government was seeking the power to rescue banks by buying distressed assets"


EXACTLY like the spike week after 911 however and that led to 6-9 month rally..we have PRES cycle and that led to NEW lows

WE have PRES cycle
We have hOPE
WE have likely DEM victory and there go your taxes.....
WE have new lows in mid to late 2009

DEVIL in DETAILS HERE? HOW THEY PULL LIT OFF...let me say this......CREDIT EXPNSION IS WHAT WE MUST HAVE, IF WE GET THAT MAYBE WE CAN HEAL.....NO JAPANESE SCENARIO?

WILL THIS PLAN WORK? REMEMBER $180B CB FLOOD.....well it gotta go somewhere huh? WHY not right into the stock mkt

You think the world is crazy...gold bugs were FREAKING OUT, "betting the farm" estatic euphoric etc about largest increase in one day ever, now? largest drop since 1980!!!! ARE YOUR FEET ON SOLID GROUND? QUICKSAND? good lesson here about being net SHORT too...this is what can always happen especially when VIX GETS HIGH!

FREE MARKETS WERE SET BACK YEARS>>> U.K. and U.S. regulators cracked down on short sellers

GOV GETS MORE POWERS (ONLY emblodening embezzlers more in future they will bailed out by who? TAXPAYERS GET KILLED!!!!!)

"Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke are crafting a plan, which they plan to soon deliver to lawmakers, after concluding they need broader powers to combat fallout from a housing and credit market meltdown that has sent shock waves through Wall Street and around the globe. Congressional leaders said they expected to get the plan Friday and act on it before Congress recesses for the election."

'As financial companies racked up multibillion-dollar losses on soured mortgage investments, and credit problems spread globally, firms hoarded cash and clamped down on lending. That crimped consumer and business spending, dragging down the national economy — a vicious cycle policymakers have been trying to break.

"The root cause of the stress in the capital markets is the real estate correction," Paulson said, adding he hopes to have a solution "aimed right at the heart of this problem."
Bernanke said a resolution would help "get our economy moving again."

Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, discounted the idea of setting up a new agency — similar to the Resolution Trust Corp. — established in 1989 to help resolve a savings and loan crisis at a cost to taxpayers of $125 billion.

"It will be the power — it may not be a new entity. It will be the power to buy up illiquid assets," Frank said. "There is this concern that if you had to wait to set up an entity, it could take too long."

The federal government already has pledged more than $600 billion in the past year to bail out, or help bail out, some of the biggest names in American finance. There was no immediate word on how much the new rescue plan might cost.

BIGGER GOV, MORE REGULATION WALL STREET NEVER THE SAME?

MORE HANDOUTS TOO!!!

WASHINGTON - House Speaker Nancy Pelosi vowed Thursday to press ahead with a Democratic plan to inject more than $50 billion or so into the economy, despite opposition from the White House and moderates in her own party.

**WHEN THE DUST SETTLES IMHO we have been weakened from the inside out, the FED now saddled with billions of toxic paper, the GOV now saddled with BIllions of bailouts......how does this trillion $$ bastard get put to sleep.........?

Best of luck, keep in mind that perhaps when day is done 1,000 DOW points are IN already in this move, it's how it works, now what going into next week, bears slaughtered......tha's what I am going to dig into this weekend and see if I can find an answer.

WHAT is NORMAL, like in 2002 lows, it comes back and gets tested.....kinda like 2nd mouse move, that is still possible and is what I may be waiting for. take care

Duratek