Limit down

With the continuing nightmare on Wall Street, there has
been a lot of talk about “limit down.” A lot of beginning
investors are not quite sure of what this means. In technical
terms, according to Investopedia, limit down is “The
maximum amount by which the price of a commodity
futures contract may decline in one trading day.”
In other words, if the market keeps tanking, and a particular
commodity future goes down, they will only allow it to go
down so far before the brakes are put on. That’s the
technical definition. But what does this REALLY mean to
investors and the market in general?
In not so technical terms, it means we are so screwed that
the idiots in charge of this zoo are doing whatever they can
to keep us from having the worst recession since the stock
market collapse during the Great Depression.
This stop gap is kind of like throwing gasoline on a burning
fire and hoping that eventually it will go out. Confidence
among investors right now is so low that you can hear the
thuds on the pavement below the 10 story windows that
these people are jumping out of.
I’m no financial genius and I certainly don’t have an answer
to this mess, but rest assure, if somebody with a brain (any
of those guys around) don’t do something about this mess
soon, we’re all going to be doing the goose step to
“Springtime For Hitler.”
If I were you, I’d do some serious study on investment
strategies. On this blog you’ll find some great books that you
can pick up CHEAP at Amazon.
I’d do it now.
Sincerely,
Christian