THE SPUZ are climbing, they have their sights set high, up .5 % to start another day of all day buying and then sitting for four hours with a little buying finale - and then we will repeat tomorrow.
I cant play this game. You see my brain is actually affected by all of those friday bank closures every week, the fact that there are 400 banks on the FDIC watch list, the fact that the FED is carrying some Bear Stearns positions on their books at 50 cents on the dollar and that Citi is carrying the exact same positions at .95 cents on the dollar, the fact that the market has gone up 54% from the march lows, the fact that we have an unsustainable debt problem in this country, the fact that higher oil prices are actually a negative not a positive like the jerks on CNBC will tell you it is, the fact that finding a job in finance has the same odds as rolling a 12 at the craps table, the fact that its different this time. Consumers cut back on total credit by 21 billion last month - a record - while that is positive in the sense that it means people are adjusting their spending habits its a big negative for a consumer driven economy.
I remain stubbornly short - Kids dont try this at home.
JB
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JB,
ReplyDeleteYou've written an excellent summary of how far this market has departed from the reality of the economic fundamentals.
This is truly a case of "irrational exuberance". It's a good phrase even if it was coined by the guy whose easy money policies were, in part, responsible for what he was lamenting.
Those are the ironies of the world we live in. If you can find a better one, take it.
fp
The sheer length of this rally is whats puzzling to me
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