Let Us Take Our Chances

Paulson says the taxpayer will be stuck with the bill anyway. Well then I’ll say “let’s take our chances”. Let’s refuse to take the bill upfront and just see what the markets will do.
The sad thing is that the US now has lost all moral authority on global economic issues. This is the nail in the coffin for hard handing economic liberty from the USA. It becomes obvious that the free-market talk of the US has been just that “talk”. This saddens us.

Well, the bailout will come and it will create a short lived boom. Today is fear day, and time to sell put options. We just sold off some more. And, low and behold, we also bought some shares today. True bottom picking at prices very close to all time low. At all time low we always consider buying and at all time high we always consider selling. So we bought some today in anticipation of the bailout rally. We do not recommend buying for most people, but if you want to play it then buy into some financial shares today.
We have not changed our mind about the broad picture, just a short term trade here.

Fiat money is all about confidence. As opposed to hard money.
We are now in a confidence game.
Confidence is shaken, it should be.
But governments are still strong, this is probably not the end of the world.
So you should buy on low confidence, and sell on high confidence.
Buy when the governments seem to be loosing this game.
Sell when the government seems to get on top of it.

This will swing back and forth many more times before this is over.

Oslo, Norway. Sept 29. 2008 Hans Lysglimt

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