Well we survived another day of Fed business and we actually managed to have an appropriate response in the markets. Albeit it was a bit tense for the first 15 minutes after the announcement, until people levelled their heads and realized things were heading in the right direction. Now the followthrough will be the real test. I think that we'll have a short term upwards movement and then a bit of hesitation and consolidation, but we should be able to create a short-term bottom about here.
I'm still not thrilled about the devaluation of the dollar, but once step at a time. I still believe the fundamentals need to be addressed and taught to everyone all over again. Unfortunately, human nature will cause a similar crisis to occur again later in life with a different mechanism.
As we go through life, we will gradually be able to learn from these issues that we keep bringing on ourselves, hopefully so we don't make the same mistakes again.
Tuesday, March 18, 2008
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