I Hate To Say It, But...

On January 21st of this year I wrote an article saying that the Dow was headed for 6,500.
http://texaswildfire.blogspot.com/2009/01/dow-on-way-to-6500.html

As I type this, the Dow is trading at 6,552 -- OUCH!!!!

Where is our president?! We need some sort of plan, and we need it now. The stimulus was a good start at a plan (even though I don't believe it will save us), but who has any idea of what we are doing about AIG and GM? Not me.

The administration appears to be paralyzed, making president Obama look indecisive in a clear moment of need. It makes me wonder, is this the change people voted for? Is this what a gentler approach gets us?

I had originally said that I would re-enter the market at this level, but now that we are here I simply can't bring myself to do it. I see no reason to be optimistic. I see a huge UAW problem and a president unwilling to let them go bankrupt (the unions are huge democratic supporters). I see a global financial system that is backed by the empty house that AIG built. I see entitlement spending exploding. Quite simply, I see more downside risk.

I can hear the printing presses humming along at the Fed, and it makes me wonder, how low can we really go? A 67% drop leaves us at 4,675. Could it become reality? I certainly hope not. But I feel like stocking up on cat food - it might just be in high demand as broke retirees get hungry.

In the meantime, I watching the EURO. If Western Europe defaults on any of it's debt we have a whole new cliff to jump off of. Let's hope it doesn't come to that.