October 9, 2008 at 10:33 pm
#781968
Inactive
Until they start spending the bailout money, it’s gonna be tough. I hear tonight they may use some of the money to buy stock in various banks. The banks can loan out $10 for every $1 in capital they have, so if they took $100 billion and bought preferred stock, the banks could then lend out $1 trillion, which is about 7-8% of US annual GDP
I’ve been buying a few stocks, hoping to trade to make a few $$(not doing well), but i’m still figuring we’ve got till early next year until this starts to look stable. 
A few things come to mind:
you don’t want to “Catch a falling knife”
Tom Lehrer once sang about leaving college for for adulthood which was
“Sliding down the razor blade of life”
and the last few weeks feel that way.