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The Bailout, What next?

[DJI]Jones Industrial closed 16:31 wed 1 Oct-08

VALUE: 10,831.07
CHANGE: -19.59
% CHANGE: -0.18

./ Sean Hannon, CFA, CFP, of Covestor.com writes for the Street.com about the 5 Lessons learned from this Financial crisis:1- Solvency not Liquidity.  2- Valuation is in the eye of the beholder 3- Public policy cannot cure private market woes. 4- Deleveraging markets kill innovation 5- No company is too big to fail.

In finance, solvency is the ability of an entity to pay its  debts with available cash.

In finanace, valuation is the process of estimating the  market value of a financial asset or liability. Valuations can be done on assets (for example, investments in marketable securities such as stocks, options, business,  enterprises, or intangible asstes such as patents and trademarks  or on liabilities (e.g., Bonds issued by a company).

The following links are meant to shed light on the fact that the Financial is not what is made out to be is the economy at large that will have felt consequences next Spring of ’09
there is time to prepare. The bailout will happen but the credit crunch will mean little with smaller opportunities in the USA to finance or lend money to.
All this because of concentration of Industries and and a FED that is drunk happy printing money afraid of deflation.

In the eyes of Mark Faber of Marc Faber, Ltd ..he notes that a- The bailout is not fair(Free Market point of view) b- Overconcentration of Industry prevents the Free Market from working as it should c-The bailout will happen but the long slumping economy will shed its bitter fruits in the Spring of ’09
in an Interview with Bloomberg Muse
.. .. Why  the Fed prints money..

Nikkei Wed.-1 Oct ’08
VALUE: 11,368.26
CHANGE: +108.4
% CHANGE: +0.96

DAX (German Market) 1 Oct- 08
VALUE: 5,806.33
CHANGE: -24.69
% CHANGE: –0.42