The announcements coming from the US, and global governments, clearly indicate that they will do ANYTHING to avoid a global economic meltdown. This includes “forcing” the largest banks and financial institutions in the US to take billions upon billions of dollars via government equity stakes. There is no doubt that this will ensure that the banking system will survive, and this removes the possibility of another Depression.

This is our new socialism, and like it or not, we have implemented many of the same polices that represent the “new China”.

This will no doubt remind lots of people of that infamous quote: “I’m from the government and I am here to help”

We own stocks that will continue to prosper in a “real economy” however if you are an investor in mutual funds or other large cap stocks, you may want to use this opportunity to sell and wait for much lower prices to re-enter those positions. It is very likely that we will make an attempt to “retest the lows” before this bea...