The market giveth, and the market taketh away.
Yesterday the market zoomed up, after the most major hit of financial methamphetamine in the history of finance. Today, as is always the case with drugs, financial or otherwise, the market is wilting down again, the Dow headed down towards 9K as I write this about 2 PM central time.
This mornings business news was full of “happy days are here again” reporting. I was tempted to immediately rush out and buy maybe 6 cell phones and apply for a dozen credit cards, and refinance my house to get lots of cash. . . NOT REALLY, lol, but I think that is what the financial masters of the universe are hoping that I and others of us who live on the sidestreets and back alleys of Main Street would rush out and do.
I ain’t buying their scam. The more money they shovel in, the more terrible the final doom is going to be. You can take that to the bank and it will be a more secure deposit than anything Mr. Paulson or Mr. Bernanke will give you.
The “Save Yourself and Your Community” advice in my post of October 3, 2008 remains the best advice. The Category 5 financial hurricane is not actually here yet, all that we’ve seen thus far is merely the leading winds and rising surf. I don’t think we are even at “tropical wind” strength compared to what is coming.
Previews of coming attractions. . . more bank failures. . . more business bailouts . . . much higher inflation . . . much higher unemployment . . . increased outflows of foreign capital . . . decreased inflows of foreign capital . . . eventually, the inability of the Treasury to sell new bonds.