The People are FED UP!!!

The people has had it. No, they will not let the Bill pass, and the Congress is behind them.

That's it. The Bill to rescue dying financial institutions with US$700 billion (read: the taxpayers' money) has been rejected.

I'm expecting to see the market plummet (not that it hasn't already, Dow is down 700 over points!) further and further until a new proposal is put in place, we should see another rally. If the proposal fizzles, another fall. Another proposal, another rally. Is anyone able to predict what is going to happen?

The last few days, I've met with fund managers, managed accounts managers, read articles from economists, columns from newspapers, etc. Many said that the Bill "sure push through one!" "Even Warren Buffet has bought Goldman Sachs."

Hmmm... So is Warren Buffet wrong? Probably not, in the long term. But certainly he gave me the impression that he was confident that the Bill will come through. He made very clear that he supported the Bill, and I don't fault him on that, but I think he too was surprised that Congress did not let it come to pass.

At this point in time, I think very few people are left to say, "The Dow has dropped so many points! It's cheap! Let's buy!" Because we REALLY know that it is likely to drop even further. While this is not about timing the market, this is common sense...

So, how do you think you should be doing your investments today? Stay in the sidelines for an indefinite period of time and let the Inflation Monster slowly chomp your money away? Rake up a huge amount of money like Warren Buffet and put your bets on things that have been proven to be impossible to predict anymore? Or enter the market slowly but steadily - tiny but sure investments, minimizing inflation losses, expecting to reap greater profits when the market recovers?