In the overall market what seems to fairly obviously be happening today is that people realized that the relief rally in LatAm and Brazil in particular over the last few days was a dead cat bounce. Nothing has changed for the better.
Our brilliant House seems determined to deny the great majority of the $18 bil. Last I heard those Bozos figured $3 billion is about right. IMF funding request from Greenspan, Rubin & Summers. Wait and see what THAT does to Brazil's market, if that's how it goes down.
Here we are possibly on the brink of another worldwide depression, certainly the greatest risk since the 30's, and those idiots are refusing to add some liquidity where it is needed most. And what, they have some considered alternative plan? Not. They are utterly clueless. They just think it hasn't stopped the contagion dead in its tracks so far, so they are going to do no more. That's brilliant.
What really happened in the last few days is that the higest economic leaders at the center of the world capitalist system have been edging towards admitting that we really could go over the brink of another worldwide financial cascade and attendant severe worldwide recession. (Perhaps not really severe in the U.S., given the fact that we seem, for the most part to not be very over extended. But long to climb out of, very possibly.) That is what the market is figuring out today. I'll be pretty surprised if things suddenly look a lot better tomorrow.
This is the classic downdraft, followed by relief rally, followed by further and probably deeper downdraft of a bear market. The relief rallies come, in some issues, because the hope is that THEY won't get hit too hard. And the economy and profits are not now in bad shape. So maybe this is all too much ado about little, for us. I.e., denial. The good times cannot be over, or not for long. Then some more of that lousy evidence spreading from overseas sets in. And down we go again.
Also, the relief rally on Clinton's chances is now over. I don't know how that one will turn out, but with the Repubs. moving inexorably towards a vote of impeachment in the House, and with that tape, and more of those 2000 pages still to be released, that story gets worse before it gets better again, for sure. Clinton's only hope, based upon the Constitutional standards for impeachment and continuing poll numbers (if they continue), is in the Senate. And we won't get there until at least after the election, and perhaps next year. So the relief rally based on maybe we won't go into full tilt impeachment mode and paralysis is now a lost hope.
Ugggg.
Doug |
