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Castrophe: The Stock Market Crash of 2008

Source: http://www.market-speculator.com/2008/11/20/castrophe-the-stock-market-crash-of-2008/
Posted on Thursday, November 20th, 2008 | In Market Commentary
Contributed by: Market Speculator (http://market-speculator.com) -

Stocks crash as investors lose confidence in the system; having many wonder will we ever come back.

I am sure many investors are on the verge of giving up or already have.  My curiousity has led me to open a poll…Note: There is a poll embedded within this post, please visit the site to participate in this post’s poll.The NASDAQ is down 26% since Americans elected Obama as our next President.  Stocks are a forward looking indicator, and at this time stocks are not liking what they are seeing.  It appears that this meltdown of our current broken (non-free) markets are headed for nationalization.  Will this occur?  It is anyone’s guess, but we have a ultra-liberal President Elect and Liberal Congress may have the gumption to pull off nationalization.Luckily, FDR and the two New Deals he brought into play were quickly eraticated once Democrats left office and sprung the market into a new Bull Market phase.  FDR’s socialism still shines today and haunts this market.  Fannie Mae price fixing mortgages, Community Reinvestment Act forcing banks to make subprime loans or face fines, and the failure of the Republicans to force Democrats to limit the powers of Fannie Mae and Freddie Mac are what is causing this terrible decline.  Solution:

  • Give mortgage borrowers the opportunity to refinance:  slice 20% off their 1st mortgage and setting the rate at 5% 
  • Make all mortgage securites Tax Free like Municipal Bonds
  • Government takes Preferred Stakes in Banks who participate, Banks after 3 years can buy back the preferred shares at a premium

Be safe and enjoy MS 

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About Market Speculator (http://market-speculator.com)
Market Speculator began his market career shortly before 9/11/01. The methodology he uses comes from the greatest stock market traders of all time; Livermore, Darvas, O’Neil, Dryfus, etc. Decision making is based on price and volume while stock screening is done by growth in fundamentals. Much like William O’Neil’s CAN SLIM approach to investing Market Speculator focuses on a narrow amount of stocks and lives by cutting his losses early.

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