The Fed’s relationship with Wall Street led to a very high-risk policy that is throwing us into a recession. How could the pundits at the Fed ignore the kickbacks and abusive lending going since 2001? The problem is that we are dealing with harsh mathematics, which means that we can just delaying the outcomes while making matters much worse. Confidence can’t do nothing against.

The big event today reported by the media is Bush’s proposal to stimulate the economy by offering rebates of $800 for Individuals, $1,600 for Couples. What a pity. Since so many households have accumulated debts like never before, the rebates will only delay the pain by a few weeks or months. This brings us to Hilary’s stimulus program… all what Congress can do is borrowing. Making holes to fill other holes. Let’s admit it: this is ‘The Great American Ponzi Scheme’.

… a five-part program estimated to cost between $75 billion and $110 billion. Four parts of the plan would increase entitlement programs for low-income Americans, including $30 billion to states to deal with housing issues related to the subprime mortgage issue...

Another Reuters excerpt reads:

Banks will continue to suffer into 2009 as turmoil in the credit markets drags on, credit ratings agency Standard & Poor’s said on Friday.

Just wait and soon, you will see that stock market players are going to take their money out of stocks and running to the safety of cash. That is how it plays out when the ‘R’ word becomes official. Then we’ll be seeing more people losing their jobs… the rebates offered by Bush will be looking insignificant.

However, for Comstock Funds Inc. which analyzes economic and financial conditions from a long-term macro-economic perspective, and whose analyzes have been proven right on the target so many times, today acknowledges: the ‘Bear Market’ is only beginning.