STOP THROWING MONEY AWAY

It is incredible to see that US government did not learn any lessons from Japan's recession in the late 1980s. Japan had rolled out numerous stimulus packages over a decade and spent well over 180% of its GDP (Japan GDP is about $5.5 trillion US Dollar) in those stimulus packages. Those packages are very similar to the package signed into law by President Obama. The only difference between US stimulus plan and Japan's stimulus plan is dollar size.

It appears that the Obama administration believe that throwing more money to the same problems using same techniques would yield different results. But the stick market doesn't buy this theory. The stock market appears to be heading to new lows every time Obama's administration announce or sign new plans to rescue the economy.

If you have analyze the plans Obama's administration rolled out or plan to roll out, not more than 10% will sitmulate the economy within the current year. As the crisis continues to slide faster, in terms of depth and magnitude, than government can stop it, the effect of the stimulus simply get buried in the sand without a trace. Money that will be spent is borrowed money. I wonder who will inherit this debt, Republicans or Democrats, in the next administration.

If the market gets some upside tomorrow, it would be a good opportunity to short the market. Stock market has a much higher chance of seeing (5 to 1) 6500 before it has a chance to see 8500.

Wish everyone good luck.