Tuesday, September 23, 2008

Market Uncertainty

While the government prevaricates on what best to implement in terms of a housing crisis fix, the details of the TARP proposal, financial markets are in a holding pattern.

Nobody wants to simply assume things will go forward as proposed. However, I'm sure nobody wants to stand on the wrong side of a 700 billion tsunami either.

Jim Cramer of Mad Money had an interesting viewpoint on how to deal with the current situation. If the deal falls through the resulting crisis will cause the price of gold to rise. If the deal goes through the resulting inflationary pressure will probably cause the price of gold to rise.

Assuming the TARP program is adopted in a manner similar to that now expected by financial markets, what does that get us? Apparently nobody is sure.

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