It's the end of the world as we know it...
and I...feel... fine..... - REM
They bailed out Freddie and Fannie just in time for the Asian market open Sunday - as we all knew they would. Guess what else happened right afterwards?
The dollar tanked.
Gold and Silver popped up.
I don't know what they will look like in the morning but the initial reaction is telling us one thing - INFLATION is just a matter of time.
Over the weekend, I went to a rather tony restaurant touted as a Wine Bar and Grill. Hundreds of different wines from all over the world priced from 36 to 90 to well over 300 dollars per bottle. The point is that this place used to be packed on a Saturday night and not only was the first seating not full but the second was downright empty.
Since when will a fancy pants restaurant seat you when only two of a party of six has arrived? Sure, right this way, sir! Can I give you a neck massage while you wait.
OK, a little exaggerated but my businessman friend looked at me with a straight and sad face and said - the economy.
So now they opened the Fed window to Fannie and Freddie. This is not over. Yes, the stock market may bounce or it may even rally for a few weeks as everyone rejoices that the Feds are not going to give up without a fight.
But at what cost?