Is this the time to buy stocks? (From "How To Protect Yourself From The Coming Financial Crisis")

[No DUplicitous DUpe]

Is this the time to buy stocks? (posted with permission)
http://saneramblings.com/phpBB/viewtopic.php?t=217&sid=15377a85c319b7c5de06401f3cc4d8c1
Another update from How To Protect Yourself From The Coming Financial Crisis

Dear Reader,

Is this the time to buy stocks? Judging by the sharp rise in the stock markets, it appears the U.S.'s massive economic problems are behind it and things will now get to be much better.

Yesterday, the Dow Jones Industrials skyrocketed 391 points because as the Washington Post said, "U.S. stocks rose sharply ... after two large banks said they were raising billions of dollars, reflecting renewed confidence in the health of financial firms." http://www.washingtonpost.com/wp-dyn/content/article/2008/04/01/AR2008040100113.html?referrer=emailarticle

This is Wall Street talk for "the government will bail the rest of us out as it did Bear Stearns." The market rose sharply because Lehman Bros., next in line for collapse behind Bear Stearns now appears able to raise billions of dollars in financing because there is an unstated belief the U.S. government will bail them out should it become necessary.

And the Swiss banking giant UBS, formerly UBS Paine Webber, with major U.S. operations, and which was next in line behind Lehman Bros. for collapse now also appears able to raise money.

It's fascinating. Wall Street firms love capitalism and reject regulation when they are making big money, but when times get hard, in part from their colossal mistakes, they lobby in secret for government handouts and they keep their huge payouts of prior years firmly in their wallets. No refunds.

What a financial system! The hard working taxpayers should pay for their folly.

Well it's not going to work. As hard as the U.S. government is trying, the problems are far too big to bail all these firms out. It's like the Titanic, there just aren't enough life boats.

Before you invest your hard earned savings in stocks, please be very careful and don't get caught up in the hype and emotion. Even in The Great Depression, people made money on a relatively small number of specific stocks and that will be true this time as well.

But unless you are a very sophisticated investor, the stock market is not for you. It is far too risky.

Dick