After the speedy market recovery to the halfway point between the yearly high and the recent low, I hope that my cautious warning to “not get bagged” was heeded.
The market is thin this holiday eve and the news is not good. Did anyone actually think that any August economic number would be anything but miserable? The stock market crashed 20% and the government almost put a cap it its own skull. Most everything except for grocery shopping ground to a halt.
And now the government wants to sue the banks for billions? The billions that the FED just allowed them to make risk-free? Don’t even get me started on the housing market and MBS! Nobody wants to do the only thing that will work, debt restructure.
It seems as if there is a Sword of Damocles hanging over the economy and the market but it is being somewhat balanced by the expectation and hope of further monetary stimulus, better known at QE3. We all know how every dip was bought with $5-7 billion coming into the marketplace every day and few are willing to be against it. But this time I bet the stimulus will not be so “asset friendly”. Continue to be forewarned.
And my friend, Dr. Fly says the “urinal shadows” are visible. nuf said…
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Awesome insight as usual…keep it coming!
Nice job Scott. I miss listening to your morning show, but I can’t do everything.
What is Obama going to offer us on Thursday eve? A jobs program of course. Maybe also some sort of housing revitalization initiative? With a debt restructuring mortgage program? It would be popular and he’s all about getting re-elected next year.
Yes all those programs will be talked about and will sound great but then they will have to pass through congress to be implemented which will take soo long to get passed, by then recession will be in full effect and big O won’t be in office.
On a side note every time big O makes a speech the market takes a dive during market hours or the following day…just saying
It seems the big investors like to send messages to Obama about what they think of his policies.
Top notch stuff