More bad news to be expected

US Treasury Secretary Hank Paulson expects that "the current strained situation" in the markets " will take more time to play out, and more bad news will come to light.
He has become the main man to watch for US market rescue in recent months.

If one may recalls, a few months back, the world focus was on Frank Bernanke, FED chairman. He is now in the backseat as he has no more bullet to use. The US government is making history and headlines in its efforts to rescue the dire economic situation or at least show the US citizens their efforts in doing so before the presidential elections in Nov.

The question to ask is how much more ammo does the US government have. You cannot give a dying man a miracle jab and he jumps to life. if he does recover, It will be very gradual. Look at the past depressions, it has always been a gradual bottoming out towards the end followed by a gradual rise. Such sharp rally movements yesterday and today are not sustainable. I see as an opportunity to further short the market or get rid of the stock you are holding.

At least Paulson is right in more bad news to be expected.

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