A few people have e-mailed and asked why if I’m so sure that the markets will drop, why I don’t short the market. The answer to that question is simple: We don’t have free markets anymore. The announcement by Bush to “swoop” in and save poor helpless home owners with guaranteed loans is exactly the kind of “interference” free markets don’t thrive in.

The Dow is up 150 points as I write this on that news and if I had shorted at any point I’d be at a loss right now. For all the talk about free capitalism that Bush frequently harps on, the audacity to let the government intervene is simply mind boggling.

This little PR stunt really isn’t going to fix anything and while I have previously stated that I might short with DXD, DOG, or SDS, I think I’ll just sit in cash until after the Fed meeting after all. Who knows, next week we might get an announcement that all Truck & SUV buyers will get a bail out because the cost of gas is rising again.

Let’s have subsidies for everyone: farmers, home owners, car buyers, and more! Welcome to the new U.S.S.R, United States of Socialist Republicans.