The market should have gone up on Tuesday. After all, the Asian markets going up were a predictor that the Dow would as well. However, the government announced plans of buying banks. Everytime it does this, investors sense the changing laws, and pull money out. It is like playing a Monopoly game and the spaces on the board keep changing. Boardwalk suddenly becomes ‘Free Parking’. Park Place becomes the Jail. I’d pull my money out too when the law suddenly changes.
Anyway, here is a very interesting quote from a very often quoted book:
Do you wish to know whether that day is coming? Watch money. Money is the barometer of a society’s virtue. When you see that trading is done, not by consent, but by compulsion–when you see that in order to produce, you need to obtain permission from men who produce nothing–when you see that money is flowing to those who deal, not in goods, but in favors–when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed. Money is so noble a medium that is does not compete with guns and it does not make terms with brutality. It will not permit a country to survive as half-property, half-loot.
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