Stock Market Analysis – 11-14-2008
The descending triangle continued as the week closed out on a low note again. Volume perked up a little, so maybe the fall to new lows will come soon. The big news this week will probably be the auto industry bailout that’s picking up steam. I guess you might as well try to get your piece of the pie when the government is handing out money right now. If this passes through, where do we stop?
The American auto companies aren’t just hurting because of the recent economic crisis, they’ve been hurting for years due to the fact that they make cars that aren’t competitive with their foreign counterparts. Should The Gap (GPS) get bailed out whenever they make clothes that aren’t fashionable and don’t sell? I think Yahoo (YHOO) needs a little help too. Rather than bugging the government for money, maybe they should be finding all the big investors, like Warren Buffett, who continues to plow money into companies that run good businesses and are worth investing in. If even the most risky speculators don’t want to buy their stocks and bonds, why should that burden be pushed onto all of the common taxpayers?