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In Retrospect Things Seem So Evident

For months I have been beyond concerned regarding the Banking Crisis and it's implications to not just the US economy but rather the World economy. The concern is not will we be in Recession (which we probably are) but can it spiral out of control into something more sinister like a Depression?
In retrospect things seem so evident. How could builders build houses and market to speculators? How could Banks and Wall Street lend to people who could not a mortgage payment?Ask a teenager and they would be to give the correct answer.

In order to potentially limit and contain the devastating outgrowth of the current issues there are numerous steps to take. We need to purge the excesses and maintain prudent budgets ( both personally as well as our govt). There needs to be fiscal restraint. Let the banks loose money on all their ridiculous loans. Let the home builders dump their unsold inventory. However this is really not enough. There are untold billions of dollar of toxic paper on the books. The US banking system has risked it's creditability on SIVs, CDOs, CLOs and CMOs. What I really do not understand is how Brazil can be self sufficient on Bio fuels. Why can't our auto industry once the leader of the world produce cars and trucks that negate our import of OPEC or at least enhance mileage? How much money would we save if we were not paying $100 a barrel oil? Regardless if one supports the war in Iraq, I can not understand how we can solve their internal conflicts...and more so..How much money are we spending there every day? We need that money back in the USA.

I know I sound like a broken record, Have a plan. Anything can happen. We all know that in a crisis fortunes can be made. The key is that you need money to make that fortune when and if the crisis comes to fruition.

In retrospect things might have seemed so evident.

Andrew Abraham
http://www.abrahambedick.com/
http://capitalinvestor1836.blogspot.com/
A.Abraham@AbrahamBedick.com

Andrew has been in the financial arena since 1990. He is a Registered Investment Advisor ad affiliate of Abraham Bedick Capital. Since 1993 Andrew has been a proponent of quantitative mechanical trading programs. Andrew's major concern is not only total return on investment but rather the amount of risk that one would have to tolerate in order to achieve returns He focuses on developing quant models that encompass strict risk adherence and correlation. He has been a speaker at conferences as well as an author of numerous articles. Andrew has spent years researching ideas that have the potential to outperform indices as well as maintain fewer draw downs.

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