Listening to CNBC there is no question there is much hope placed in the powers of the Federal Reserve. Somehow their initiatives can fix the economy. Certainly, the Fed's actions can soothe the markets, but this is just all hopeful wishing. What gets lost in all the conversation is whether the past Fed actions were of any benefit and did they achieve their goals. Many would have their doubts. But most of this kid of critical thinking gets thrown out the window because well, the stock market is struggling. Something must done!!! When listening to the talking heads and experts on TV the lack of "real" analysis and the abundance of group think is surreal. It doesn't make me feel comfortable.
Is there ever any reason to believe that the outcome of any perceived market moving event will ever be negative? Do you think the Federal Reserve will come out today and say, "geez, we made a mistake and pissed away $600 billion on QE2 and the economy is now on worse footing when we started?" Do you think the Greek government was going to go through a plan that many thought would de-stabilize markets? Is there any circumstance you can imagine where Democrats and Republicans won't come together to raise the debt ceiling? After all, an inability to do so will "roil" the markets. (I love that word "roil".)
On this day in 1944, U.S. President Roosevelt signs the G.I. Bill, an unprecedented act of legislation designed to compensate returning members of the armed services-known as G.I.s-for their efforts in WWII. Does government need to make another initiative to spur on job growth. Bill Gross seems to think so.
On my screen today, everything is up. Dollar, gold, Treasury bonds, stocks, and oil are all higher. I guess no one knows where the market is going. Or everyone is covering all the bets.
Solar panels at the White House? What will they think of next?
Remember end of the month is approaching and the July 4th holiday. Two very good reasons to see the market stabilize at these levels and to be a short term bull here. It is illegal to have the markets go down around the time of our Nation's birthday!
As an avid NBA basketball fan, I am missing the playoffs. At night, I find myself channel surfing with nothing to do. Yes, I needed a rest from the many late nights, but what a fantastic playoffs and an even better NBA Finals. The level of play was over the top. Congratulations to the Dallas Mavericks. Everyone wants to get on LeBron, but as a fan, there were no losers.
