Credit Meltdown leading into Bear Market

The market has gone to hell this week with this subprime and credit panic getting the better of everyone.  It will supposedly get worse next week, but I really am not too concerned with most of my funds which are there to see long-term growth and ETFs.

It’s a problem when people think the subprime is going to spill over to the entire market when the core of the issue lies largely in the housing and financial sectors.  So some private equity will not be able to easily get money to finance leveraged buyouts, then again this should make them try harder in the long-run to get funding and to reassess their interests.

The buyers will eventually return to equities after they have gotten too comfortable with banks, foreign currencies, and bonds.  The money is not being lost, it is simply being transferred into another source of investment.  Sooner or later most of my current losses will be wiped out within the next 1-2 years.

Going to the Simpsons Movie with Weihsin and Bharat made the day much more interesting.  It was a funny movie with lots of twists.  I still cant believe they showed Bart naked when he was skating, Homer giving people the middle finger, and killing Doctor Nick.  Funniest was when Ralph saw Bart naked and said, “I Like Men”.

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