Luckily I covered my futures on the initial dip and have now watched them rocket higher as GE trades lower - how can you have an economic recovery without GE trading higher? I shouldnt think of such things.
I believe today is the anniversary of the 1987 crash - that is significant for no reason what so ever.
I saw one line in Barrons this weekend that struck a chord - "why we ought to be wary of the good fortune of a lucky few". This is what I have been trying to express for a long time and Alan Abelson did it for me. The banks (BAC,C,GS,JPM,MS,WFC) have befitted massviely from the current FED policies and the TARP program. They have an enormously steep yield curve which allows them to make fat profits and they were given huge sums of money to plug holes in their balance sheets. So to the people working at those institutions who are on the right side of things right now the world is on the mend, they are getting large bonuses again and hell yeah we are gonna throw a party in the stock market. What about the rest of us? How bout the people who have seen their jobless beneifts exhausted? How bout people who worked at the car dealerships that were closed? No wonder this is the most hated rally of all time - only a very few people are along for the ride - for the majority of Americans things have not gotten better in the last 7 months of this equity rally. Foreclosures till loom, jobs are scarce, paycuts are commonplace. So I thank Alan Abelson for putting it into words.
JB
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JB,
ReplyDeleteThere have been numerous articles about how Wall Street and the White House are the coziest they've ever been under the Obama administration. Even the NY Times, as pro-Obama and very left leaning had an op-ed on it yesterday!
If the general idea gets out -- most people have no clue as to how Wall Street firms, epitomized by GS make money -- it could really spell trouble for Democrats at election time next year.
These guys getting bonuses (not all, but many) should be criminally prosecuted fro injuring the well-being of millions of Americans. Maybe in the next life.
And as the immortal Shakeseare wrote, "first, we kill all the lawyers".
fp
thanks for the comment
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