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Tuesday, August 10, 2010

Dow Dog!

I am feeling more and more paranoid about the state of our economy. I don't see where the new jobs will come from, and I don't see washington really doing what is probably necessary.....creating tons of green jobs, infrastructure jobs, and educating our people properly to compete in the world economy. Similarly, when the housing crisis began, I felt that the Federal Government should have stepped in, using Fannie and Freddy, and converted all mortgages in this country to 30 year fixed 4% mortgages. This would have more quickly put a floor in housing and put an average of $200 per month of money in every households budget. Now I see Japan all over again......10 years to drop housing values approximately 80%. The continued outsourcing of our jobs, and the constant corporate drive to find cheaper labor, will some day, create an entire world of rich and poor, and labor costs being more standardized the world over. That is very bad for us. On an investment front, I keep shortening the time window and trading more to make a few shekels. I have been trying to buy stocks and etf's for shorter and shorter periods. I am afraid to buy and hold in this environment. Today I did my shortest trade to date. Yesterday, a few minutes before the close, I bought DOG, the Etf that is the inverse of the Dow 30. Now I did this because I believed that there is a lot of fear of the Fed, and they were gonna open their yaps at around 2 p.m. eastern time. Well, as I was heading for the Gym at 11:00, the Dow was down over 100, so I sold that dog. So, for a real time trading period of 4 hours, I made a whopping $85 bucks. Now if I could make $85 bucks a day, for each of 200 trading days of a year, that would make 17 grand in a year, but sure would play hell with doing my income taxes! Anyway, gonna have to make money in the market probably internationally. Oh yeah, and the Fed used one of its last bullets to try again to re inflate the economy again, to avoid deflation, and to weaken the dollar. The have to keep tinkering, when, at this time, they really should have done nothing. Another financial crisis is coming, and like deputy dog, they are running out of bullets.....

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