Enterprising Investor Forum

Economic Outlook Wednesday, March 26, 2008

We remain cautious about recent developments and skeptical about the apparent bottom some say we have hit.

We still feel that there are too many open issues that haven’t been fully answered:

• one week ago everyone thought that we were on the verge of a massive meltdown – has this changed simply due to the rate cut, discount window and intervention on Bear?
• is Bear going to mark the beginning of the turn-around or merely the first of a number of high profile collapses?
• if things do not get better, can the Fed still maneuver? Do they have enough ammunition?
• how will the US economic climate continue to effect the world scenario and confidence?
• what will happen once the crisis starts to hit Europe and European financial institutions – to the same extent as the US?
• etc…

Naturally, we will never have all the answers but one shouldn’t be too early to call the bottom.