The Dow continued its rollercoaster ride in Economic Loony Land, closing down almost 680 points this afternoon. What served as the catalyst for the plunge? Those who follow such things point to the National Bureau of Economic Research’s contention that the US has been in recession since December 2007.
Congratulations, we’ve been living in the greatest depression since the Depression for almost a year now. I’m sorry, but I fail to see how the NBER’s conclusion somehow sent the markets into such a panic. US Treasury Secretary Hank Paulson also said today that he’s working to expand the availability of TARP funds for foreclosure relief. First, he uses the $700B to buy toxic assets, then he doesn’t – then, he uses $350B to inject capital into failing financial institutions, and then walks away. Now, he wants to use billions to help homeowners. See any correlation here?
I’m more inclined to side with those who see a connection between the politicization of the markets and its current manic-depressive volatility.
Monday, December 1, 2008
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5 comments:
I keep telling myself, "You're buying cheap shares...you're buying cheep shares..."
Now's the time to appreciate working for (and sharing ownership in) a privately held S Corp. Our vision extends beyond the temporal decision horizons generated by the gyrations of the daily market loupe de loupes. Our sales may leave much to be desired this year, but service to our communities and loyalty to our employees figure as prominently as returns to ourselves when generating course corrections......for now. I worry about our future, and about the potential for returns on our long range business plans we formulated based upon assumptions we made about continuing free markets and a reasonably workable regulatory environment. I'm not too sure the NWO in Barry's FCC will be very warm and fuzzy for commercial broadcasters.
It is time to say "enough". Let things settle out. No more "enhancements". Game over. Let the system stabilize, find a new normal.
CW - Agreed. I think the actions of the Fed and Congress, however well-meaning, will have the effect of prolonging the pain.
Rip the Band-Aid off and allow the wound to heal naturally...
Right on the mark gents. Think these nutballs have ever heard of the law of unintended consequences?
jts
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