pairadox

Stock Market Rally: Is This It?

Who benefitted from Ben's move? The little guys with savings accounts, or the "Smart Money Guys" on Wall Street who made off with "dumb guys' money? Or was it the bankers who could borrow for nothing and lend it for something? Maybe this is trickle down theory.

This Recession's Not That Bad - And We're More Than Halfway Through

Last week the WSJ reported China's 2009 estimated GDP would decrease from 9 to 7 %. This week syndicated articles decrease the estimate further- from 7 to 5 %. India is also falling deeper into recession. Those were the two countries that were suppose to grow and pull the rest of the world out of the pits. This recession is world wide and is hardly comparable to the previous two. Wall Street investors believe the worst is over and we're on the way to recover because as far as they're concerned, recession is a non-event, but something they read about in the news; bad news can easily be ignored. Rally on! They're the only one's who can afford it. When the king of spin admits that we've been in recession for the last year, you'd better worry. Whether you chose to call this recession or depression- it makes no difference- it's going to be around a lot longer than you ever imagined.

Lower Markets Are Still to Come

The current rally reminds me of the October 2007 buying frenzy, when the market peaked in the face of horrendous news. Banks reported multi-billion dollar losses, and talking heads said they were "coming clean", the financial crisis was over; but economist were telling us the worst had yet to begin. When GW, the king of spin, says, "Hey, guess what? We've been in a recession," I worry, that we may be careening toward depression.

Last Thursday Was the Bottom - It's Time to Get Back in

The market rallied in the face of horrible economic news in the last two days. Kinda reminds me of October 2007 when investors were buying banking stocks after they reported multi-billion dollar losses, because they had "come clean", thinking the worse was over.