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Motley Fool Global Gains / GGM: Global Gains Philosophy


Subject:  Re: CATASTROPHE OF INFINITE REGRESS Date:  10/27/2008  10:32 AM
Author:  TMFeatnbybears Number:  531 of 5166


I have to ask you this. You have been in the market far longer than me and seen many cycles unlike me who entered the market after the dot com bust. Did you learn anything new in this downturn?


Ya know, I have. I feel that in this downturn what has "happened" can be repaired and is being repaired.

During the dot com crash, we were faced with paper companies. there was nothing there to save, nothing to carry, nothing for the government to give relief to.

The trigger here is the mortgage paper the the unknown of its value. This is repairable. The government can buy the paper at a discount, they can charge 5% interest for doing the hold of the assets, that will allow a window of time to judge a default rate, allowing insurance to be applied again and the system will return and the government get out, hopefully at a profit.

I hate being down, but I also know I lost the last time, not by the stocks going down, but by owning companies that didn't have value and selling those that did. It is hard, it is against all human nature of fear, but I will not make the same mistake again, I will hold. Even if the stocks do not return to the previous high, I will not give away the recovery dollars as I did before. I will not try to make a silk purse out of ... well. not a sows ear, but I will not attempt to sell one good company that is down to generate cash to chase some other rainbow.

I could go down the tubes again, which would kill me, but at least it will be with a plan this time.

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