Wednesday, November 26, 2008

Citgroup Bail-Out, Fiscal Stimulus, the Latest Fed Program

I was pleasantly surprised by the positive market move on Monday in response to the Citi bail-out plan, which to me is a more than a little scary. I agree with some of the commentaries that are yelling for a coordinated and thoughtful approach rather than the Sunday night plans that commit billions and billions of taxpayer dollars. As for Obama’s announcement of a huge fiscal spending plan, yes we need one, but again this has to be extremely thoughtfully implemented. What we do not need is a plan of the likes of this past summer which was a complete waste of money. Big issues remain in the credit markets but I am confident that the FED and the Treasury are doing everything they can to improve the markets. This Program annoucement is a good one, but they are doing just SO MUCH that I am worried about the cummulative impact of it all on their balance sheet. We are in unprecendented times and they are doing unprecedented things.

Yesterday I sent out a newsletter that summarizes the factors that I believe contributed to the financial crisis, as well as some steps you can take with respect to financial preparedness. If you have not yet signed up, please do, good stuff to come!

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