Cobalt, I see where you are coming from. However, free markets should be free.
Consider:
On Monday, the FED cuts rates by .75 before the open, and companies all do stock buy backs. They hold up stocks at levels that were questionable before the employment data came out today (more job losses, and a huge decline in confidence), and everything seems stable. We also ignore the fact that other markets drop 5% - 10% as a result of everything going on here (and possibly as a result of the fact that our economy, as today showed, is still weak).
Then around 10 AM, the buyers dry up. All the good patriots buying stocks for no fundamental reason spent all their cash (which they frankly maybe should be saving if jobs keep getting slashed) and the market sells off 10%.
Given the above, we are in a position where the markets are weak, people are shaken, and the FED and companies with buy backs in place have already done what they can.
What should be done is let markets work. If some idiots sell their stocks and drop Microsoft 20% (As was done in Germany after the attacks) I will buy it. So will other value players. People that have 100% faith in the markets will own shares, rather than people that feel they need to cheerleader everyone into holding stock. Also, if there was a 10% - 20% drop say, the FED could THEN come in an be a stable influence.
Think about it. I am long and love America, but I love free markets and out system the most. This is not a command economy, lets not try and make it one. |
