Wednesday, September 24, 2008

Concerns about the Paulson Plan.

There seems to be a growing amount of anxiety about the fate of the Paulson plan in the U.S.Congress. I can understand why. Quite a few things are left up in the air. It is basically a, trust me and I will do a good job. As I have sad before I think he will but I can understand why people would be cautious about this approach.

To me we have little choice (see what happened to the stock market at the sign of discord?) and I think members of Congress know this. They may question, or demand some concessions, but in the end they will sign off on it as they really have no choice. I am not saying that there will not be some concession, there will be but no thing that will derail the process. But lets remember this will not solve the problem. Do you really think that once the bad loans are off the table Banks are going to begin lending again. Not a chance. They will sit back and reassess and go back to their core businesses (remember I currently work for a bank).

I want it to work but I think that we are in for range bound trading (large, violent ranges) for the foreseeable future.

Good Luck and Good Currency Trading.



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