I've been playing with the stock market for less than a year. When I heard about the government bailout of Freddie Mac and Fannie Mae, I thought it would mean doom for financial stocks, so I dumped a bank stock that I had profited from and replaced it with a pharma stock. I'd planned to dump all financial stocks as soon as doing so meant any gain. I'm on the verge of doing it again today, but I am puzzled about something and hope you can explain it to me. Why are tobacco stocks considered good? Smoking is so un-pc, and it doesn't look to me like many people smoke. It looks more to me as though it is on the road to being outlawed. The cost of cigarettes is mostly tax.

Right now, it looks like I am wrong in thinking that the bank stocks will be big losers. Is is possible that the bailout won't mean doom for financial stocks?

Remember that tobacco companies have overseas markets that are profitable. If you were Big Tobacco, you'd be looking at China and India and drooling!

uhhhmmm, I think you answered your own question right there my freind.
"...The cost of cigarettes is mostly tax...."

isn't nice to see how Big Brother really cares for YOU!

Thanks, Kaylan, that makes sense.

Where is the US Government getting all the money to do all these bailouts? I thought it was already too indebted...well before the @#$% hit the fan?

Or is it just a gigantic version of using credit cards to pay now and let the future generations be taxed to pay for these excesses?

I would love to see an analysis on this.

Cheers

The US is getting, or I should say, the US will get the bail out money from future taxpayers. You are 100% correct.