I believe index funds are pretty much a good buy and hold strategy. Buying and holding individual stocks, however, on the other hand in this market climate is a terrible idea imho. But what do i know?
I don’t know. I think the gov is going to trash everything else to avoid a complete meltdown. I think the fed just figured out something recently.
1)Taking a company into receivership is a bad idea in that it wipes out equity and creates havoc on the market (aka FNM/FAE)
2)Doing nothing on a company wipes out the company and equity and creates havoc on the market (aka LEH)
3)”Loaning” an exhorbitant amount of taxpayers money to a company and meanwhile overseaing the company use that loan *might* be such that
a)it doesn’t come across as sounding that bad to taxpayers because the company is suppose to pay the loan back
b) might not hit the company’s equity that hard in the short term (after all it’s just a loan)
c) see the company through an organized order of cleaning housing
Of course, the “loan” probably is a farce, since I doubt it will ever be paid back in part of in full. In fact, I wouldn’t be surprise after the markets calm down that mysteriously these loans just go away or are partly “forgiven”…Poof! What IOU from company XYZ? The Fed may be onto something here….
