Monday, October 13, 2008

Encouraging Signs

One of the many encouraging events over the weekend was the infusion of capital into Morgan Stanley, one of the two investment banks still standing as independent companies.MarketWatch It had fallen about 80% in price this year and took a really nasty tumble last week.  

The world governments did come up with a plan in a major effort to avert a financial meltdown. Yahoo! Finance   The very existence of these radical measures indicate however just how dire the situation had become by this last weekend.  I will be looking for some bonds to buy this morning or I may do a nibble or two on closed end funds.   While I acknowledge saying in an earlier post that I planned to avoid doing that, the discounts to NAV have just become so  ridiculous that I may succumb to temptation. 

 While the measures taken over the weekend may avoid a further meltdown or a depression, I do believe that a recession is unavoidable.  A recession would be the best result that could happen at this point.

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