Week is beginning under pressure as the DJIA is defending 10000 with various financial fires burning around the globe. Now that the $700 billion bailout has been passed, banks are still reluctant to lend, thus keeping a tight bias as they hoard cash. This will force the Fed to lower rates as they try to drive the cost of borrowing lower, but the only impact may be to increase the profit margin on new lending standards.
Warren Buffett continues selective purchases of preferred stock as he takes advantage of falling share prices. Looking to this guy as some type of economic saviour is like believing your insurance agent is really your friend and doing you a favor buy accepting your premiums. Warren does not have a clue.
Presidential politics will become incredibly ugly in the final days as Democrats launch retaliatory strikes against Republicans who are now unleashing the negative machine as they try to make character an issue. Slinging mud and a slumping economy will not please the enraged voter.
