Rantings and tirades of a frustrated economist.
Nice chart.Yes, like you I immediately thought of the most recent rally. But I wouldn't characterize that as a "sucker's rally." It was based on the real announcement of government to buy risky, uncertain assets and take them off the corporate books. If I knew the government was writing me a check for $10 billion next month, I'd be having a party today too, even if I knew my risk of dying from a heart attack in the next year was elevated.The other drops in the chart were directly attributable to piss poor handling of the economic crisis with wasteful spending and debt. It's interesting, though, that it took the final election results to cause a stock market drop. The Iowa Electronic Markets and other futures markets correctly predicted an Obama victory well before the Dow. I suppose the IEM market is more precise than the greater stock market becuase it's a more targeted wager.None of that disputes your idea that the stock market will dive again as we sink deeper into the grave Obama is digging for us.This is what he meant by "shovel ready."
Notice when this run began - 11AM on September 11th, 2008. This suggests that this was not a coincidence. Rather than having planes literally destroy the NY financial district, this "electronic run on the banks" achieved the same functional effect. Who has the power to make that kind of an attack on the US financial system? Sovereign wealth funds? Thoughts? How would we find out whose fingerprints are on this? Is this why the Fed hasn't revealed where it is putting all the TARP money - because it is basically covering for a strategic attack on the US financial system?
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