After reading oversold on Wednesday, the stock market put in a weak, one day rally Thursday then posted fresh lows on Friday.The door is open for another 500 point decline as a result. Whether that will happen remains to be seen. This decline has been, it seems, based on the lack of economic recovery outside the executive suites of the Fortune 500 companies. It may seem strange that Wall Street could be so very insular as to expect the recovery of the Wall Street banks and increases in the executive's pay at the largest companies means that the economy will prosper, but Wall Street has its own set of delusions, fostered, in part, perhaps, by implicit Federal guarantees.
The bond market has been overbought almost forever, it seems, and still shows no signs of heading down. It will happen someday, just not today. Too bad we couldn't have had a second version of William M.Martin or Paul Volcker at the Federal Reserve rather than that damn fool Reagan appointee we did have. We might not have an economy so thoroughly shattered. In another life, perhaps, prudence will reign over politics.
The bond market has been overbought almost forever, it seems, and still shows no signs of heading down. It will happen someday, just not today. Too bad we couldn't have had a second version of William M.Martin or Paul Volcker at the Federal Reserve rather than that damn fool Reagan appointee we did have. We might not have an economy so thoroughly shattered. In another life, perhaps, prudence will reign over politics.
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