Friday, April 03, 2009
Looks like the recession is over:
From the WSJ:
DJIA Has Best 4-Week Streak Since 1933
On Friday, the Dow Jones Industrial Average rose 39.51 points, or 0.5%, to 8017.59, its highest close since Feb. 9, bringing its advance to 3.1% on the week. That was the fourth straight week of gains, and at 21%, the biggest advance for this kind of four-week streak since May 1933. The broad Standard & Poor's 500 index added 8.12, or 0.97%, to 842.5. For the week, the S&P 500 added 3.3%, and has cut its losses on 2009 to 6.7%. The Nasdaq Composite added 19.24, or 1.2%, to 1621.87, and is now up 2.8% for the year to date.
Today on ABC's Good Morning America
, their financial-affairs advisor explained what was happening by using the analogy of a car race. The car that speeds ahead is the Market, followed by Spending, with Employment the last car racing to Recovery. So the conclusion is that the Market tells you where we stand.
While the advisor admitted that this could
be a bear rally, her overall opinion was a positive one (citing small upticks in various economic reports).
I'm convinced. Are you?
Happy Days Are Here Again!
A chicken in every pot, a car in every garage, a pony in every backyard!
Get back to me after GM files for bankruptcy, AIG "needs" another bailout because they owe tens of billions of dollars of CDS's on GM, and the entire GM manufacturing network collapses.
GM is going to go bankrupt because the major bondholders hold CDS's on their GM bonds. Why should they voluntarily renegotiate their bonds and take a huge loss on their investment when they can recover their full bond value by refusing to renegotiate their bonds and letting GM go bankrupt?
The market is about to rally because the government is throwing open the treasury doors. First come first served. Take all you want! We'll print more!
So the government relaxes "mark to market" rules, thus once again allowing Wall Street to lie about the value of its insane financial instruments, and the market flies off the handle.
Yep. The recession must be over. That's what we needed. Get all that crap back swept under the rug and everything will be fine.
Never mind that soaring unemployment. We'll worry about that later. That's the "Last Car." Once all those newly unemployed people start immediately spending, everything will be better!
I think I'm getting the hang of Obamanomics! Do I have it all straight?