How Low Will It Go?
The market continued to erode today on news of continuing weakening of bank stocks and the possibe collapse of GM. The paradox is that Obama's approval rating continues to be high-- more than 60 percent.
My interpretation is that the market continues to be skeptical of a recovery in key sectors of the economy-- especially thge efficacy of government intervention-- while the public generally recognizes that Obama's is doing the best he can to find a solution to inherited problems.
The stock market is the more accurate indicator than polls, as it recognizes the verdict of all players in the market-- and the verdict right now is a thumbs down. While I think it is a mistake to anthromorphize the market, I do believe that it tries to hurt or fool as many people as it can. Stocks will only recover when the floor is reached. The floor will be reached when if last bit of optimisim has been squeezed out of the market and a conensus has been reached that all is gloom and doom. We're not at the place yet.
My interpretation is that the market continues to be skeptical of a recovery in key sectors of the economy-- especially thge efficacy of government intervention-- while the public generally recognizes that Obama's is doing the best he can to find a solution to inherited problems.
The stock market is the more accurate indicator than polls, as it recognizes the verdict of all players in the market-- and the verdict right now is a thumbs down. While I think it is a mistake to anthromorphize the market, I do believe that it tries to hurt or fool as many people as it can. Stocks will only recover when the floor is reached. The floor will be reached when if last bit of optimisim has been squeezed out of the market and a conensus has been reached that all is gloom and doom. We're not at the place yet.
posted by My Mall and News at
9:56 PM
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