Do they make enough Drugs????

... To make you buy financials right now? I don't think so. I don't think that even if I was Jimi Hendrix high, or Sgt Pepper and the Lonely Hearts Club Band high I would buy financials. There are not enough pink and purple mind altering drugs in Juarez Mexico to make me buy financials... period.

Let's look at the hurricane that is tearing through the world that is financial right now. An estimation on the Fannie/ Freddie bail-out is at $30 billion-- which I think is a low ball shot at best. I say double that and add 10% if you want the wheels to actually turn without any issues. And that is just the tip of the iceberg. The Feds are also trying to do massive scale loan modifications on their newly acquired toxic-waste-dump Indymac portfolio of option-arms and no doc garbage loans. They will be 'fixing' the glitch by lopping off huge amounts of principle for underwater equity loans and giving fixed rate loans to late paying borrowers that have seen skyrocketing adjustments, negative amortization or job losses. And the estimation is that the rates given will be much lower than the going rate for you and I bill-payer. If this catches on, WHY would you pay your bills???? Why not just stop paying the mortgage, binge on Red Lobster and boxed wine and wait for the feds to give you 3.65% fixed with a $10,000 principle reduction. These people are being REWARDED for not paying their bills or taking out a risky loan. How will this help the current problems?

And then there is the looming bust of the commercial real estate market... uh oh-- this one could be bad. As the banks try to pick themselves up from residential mortgage losses that are thrown at them like Mike Tyson jabs, the commercial real estate upper-cut has yet to even enter the ring. Imagine a peace full neighborhood in 2005 in the middle of any state-- a happy place that is a 50 minute commute to anything, and is surrounded by McMansions that were all financed on no doc loans to 100% LTV. Bob and Mary homeowner mowed the lawn and cut the weeds back in a scary 1950's like perfection. Down the street the developer opened up a $14.8 million, 40 store strip mall/ office center that was heavily financed, and leased the space to burrito shops and flower stores, small businesses, novelty stores and mini-marts at exorbitant rent prices to cover the financing-- but that was OK! This is a good neighborhood! People will spend their money here!... Now look at the same place in 2008. Gas prices drove the commuter back to the city, and Bob and Mary couldn't make their ridiculous house payments when the loan adjusted, so they were forced to sell... but no one was going to pay the price that Bob and Mary wanted because values are down 30%. So they packed their stuff in the 2008 Tahoe they bought instead of paying the mortgage and sent the bank the keys. But Bob and Mary aren't alone... their whole neighborhood is following their lead-- and no one is cutting the grass. No one is buying $8 burritos or dining at the restaurants in the strip mall. The businesses are all leaving too. Down the Street the developer can't keep the rents in his strip mall/ office park and he is ready to foreclose... on the whole $14.8 million he borrowed for the project. Now multiply that scenario by 500 similar neighborhoods and times 50 states and you see the bitch slap wave that is about to crush the banks.

Lastly, you have the blood of the whole financial system, the consumer. And the consumer is staring into the first consumer recession since the early 90's. This time the consumer is really screwed too-- with way to much home and auto debt, a mountain of credit cards and no savings. This consumer is one missed paycheck from bankruptcy... When will the house of cards collapse? Tomorrow, 2 weeks, a year? Regardless, it's coming. And when America stops spending then we really have a problem.

So, call your drug dealer (they are listed in the yellow pages under 'doctors') and see if they have anything you can take that would have you invest in financials right now. I'm guessing they have pills to increase the strength of your trouser trout and help you with that life threatening restless leg syndrome, but unless that dealer has something you've never heard of, there shouldn't be any amount or mixture of drugs that would make you remotely interested in financials right now...