I don’t know if it’s 0bama’s influence or not, but there is some really serious selling pressure going on in the stock market at present. The financials are getting hammered, and with all the stimulus being pumped into the banks, you have to wonder, where are these banks going to be making money “going forward”? (to use an irritating phrase from that list the other day) Generally, the market is NOT going to rally without the financials.
I don’t think this is any kind of three-month deal. Everything I look at points to a long and pretty deep recession. IMO, 2009 will absolutely utterly suck. Disclosure: I’m a pessimist, in case that wasn’t clear. IMO, we are at the front edge of this “downturn”.
where are these banks going to be making money “going forward”?
That’s easy: borrow money from the Fed at 1% and use that to buy TBills at 3.9%