We now have 2 noble prize laureates in the Obama administration. Obama admits it is a bit precipitous, but a call to action non the less has been granted. I think he should be allowed to serve three terms in office. This financial tumult is really obfuscating what we can truly accomplish. The real question, was the fed broke before the financial crisis hit? Did Bush's covert operations empty the coffers?
I don't trust this market one bit. The set up I believe will be related to consumer sales, job numbers, and inventories not meeting market expectations. Wall street has knowledge that there is no immediate stimulus to fill the gap. Consumer sentiment is in quandary so this injection was not enough to prime to consumption pump as many believe. [more]
Until it doesn't....
Great economists have been saying for a quite a while the market is way over bought. I am a reader of David Rosenburg of Gluskinsheff and he doesn't see a green shoot to speak of and we are soon to suffer a massive withdrawal next quarter from the lack of stimulus. If it were not for the stimulus, GDP growth would have been down 6% instead of down 1%. [more]