Thursday Outlook: Dysfunctional Politics

“I couldn’t have gotten this deal six months ago,” so says Warren Buffett regarding his GE (GE) score. Perhaps one might add, “…and you never will either, so bug out!” The gang at CNBC is pretty excited to have him as an owner. I wonder if they’ll give him his own show. How about calling it “My Big Money!”?

The congressional bailout bucket brigade is meeting again. They’re already decorating the proposal with all manner of non-bailout related nonsense like: renewable energy tax incentives, relief from the AMT and weird stuff including a “Mental Health Parity” provision, which would require health insurance companies to cover mental illness at parity with physical illness etc. The taxpayer will no doubt need the mental health provisions right? The bill has gone from 3 pages to over 400 and growing.

This entire episode just demonstrates what a cesspool Washington DC is. What a joke!

Speaking of sewage, the bailout peddlers are much too focused on this bailout bill and ignoring other more serious news like ISM data where Wednesday’s report showed manufacturing in recession. Further, earnings estimates continue to be revised lower for the third quarter. In April earnings were estimated to be up 17%, in July by 12% and now a negative 1.7%. This is hardly the stuff for a rally.

Volume was light today as investors are seized-up once again on “congress watch”. Overall breadth was negative.




































































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