Economy Still A Mess

So far it has been a another brutal week on Wall Street if you own stocks. The market continues to head south on speculation of the economy slowing even more.

Treasury Secretary Paulson announced today they the federal government will not buy bad mortgages from banks. I applaud the move for the federal government to stay out of taking a stake in the problems, but the timing and change of course were disheartening to the market.

We see consumer confidence (and spending) continue to decline. Companies continue to announce decline sales and profits. Some are folding or laying off employees. Other governments are injecting stimulus packages to bolster their stagnant economies.

The question many are asking is "are we at the bottom?" It is a legitimate question to be asking. I have been wondering since August if we have reached the bottom. Personally I hope we have.

I was talking with my grandparent about the current environment this week. They lived through the Great Depression. Fortunately they were in Missouri living on farms. (Think John Grisham's novel A Painted House which they say some of the characters sound too much like their relatives.) They knew they were poor but they also knew they were fortunate to have food on the table every day.

They think times are tough today but not like during the Great Depression. They are hopeful that we are going through the worst and better things are coming. They have seen a lot through their years and I think they are right.