HOLY S@#T! The stock market did what?  If your like me and follow the stock market and bond market you might be scratching your head wondering what the HECK is going on with the Markets.  The past 4 months have been nothing but pure torture for any investor.  The fall of super giants like Fannie Mae, Freddie Mac, Lehman Brother, CountryWide, and AIG are now just casualties of the war.  Hundred's of lenders have no gone under and the clouds are still looming on Washington Mutual, and others.  To me, as a seasoned mortgage professional for the better part of more than a decade before starting my newest venture http://www.zipvo.com/ a few years back, the writing was on the walls. 

Never have I heard about people that had NO Credit, No Income, NO Down Payment, and have 5 different banks fight over to getting that loan.  So, look at where we have come since.  This is really effecting us all NOW isn't it?  As a homeowner, I am quite upset that my home value is dropping.  As a stock investor I am even more upset watching those once profits go down the toilet!  With all this and people in the media talking about a depression, I am thankful that we have alcohol to numb the severe pain.  

There was a time that I was always an overly optimistic stock market investor. But now, I am really worried about the FED and their lack on action.  Unlike past Fed Chairman's "Uncle Ben" Bernanke stated the other day in the Fed's NON ACTION at their FOMC Meeting that the risk of inflation out weighs the risk of a recession.  WHAT? HELLO?  ANYONE HOME?  That will be great explaining to Mr. Smith that you have no value in your home, your 401K is worth nothing, you have NO MONEY, you can't find work, BUT, there is no inflation :-)  Please spare me!  If anyone remembers in 2003 the markets were under far less pressure and the then Fed Chairman "the Maestro" Allen Greenspan took rates down to 1%.  Right now we are at 2%, WHY?  Why is the government so eager to bail all these companies out and not give some relief back to the American public? 

There are no clear and easy answers here.  Many would say and I would have to agree if you allow the financial markets to fail as they are without government intervention we could have an even LARGER problem on our hands.  It's just mind boggling that all these crappy sub prime loans have had such a big impact on us all.  On the good note, a bottom is clearly marked when all the media and news is front and center with these issues as you would have seen in yesterday's front page of the New York Times or any major Newspaper.  So maybe we have found a bottom?  (I would have to say we have)

http://www.cnbc.com/id/15840232?video=859005424

We are clearly in unprecedented times here.  I am in no means a doom and gloomer but, the pain has become so severe I am really starting to wonder if happy days will come again?  I will say one thing, it has been proven that over a long term period, no investment is ever better than your investment than in the stock market.  However, you might get an ulcer or drop dead before you see that happen.  Keep the Faith, this too will pass.....  God Bless us all and God Bless America!