re: #59 itellu3times

Market *could* make a bottom around here over the next week or six, but it’s very undecided. Per the press of the last few days as Wall Street and MSM start waking up a bit about the cluelessness of Obama and all his little friends (Geithner, Orszag, good grief), a few elements of existential panic are beginning to surface outside of LGF. If these catch on, I dunno where the stock market bottom is, nor when it will recover. I’m not ready to panic yet myself, but this market has been one cascade of oh-this-is-the-bottom for about a year now. Unprecedented in a bunch of ways. Unpredictable by anyone currently on the planet.

The markets have a herd mentality, and right now they’re running scared. The bears don’t even know where a bottom is. There are no real safe havens in the market - sectors that are relatively safe compared with the rest of the market because the situation is so badly deteriorated and because the Administration’s policies are anti-business on a fundamental level.

We aren’t going to see the Administration propose corp tax cuts across the board, and they’ll dabble on the margins claiming that they’re cutting corp taxes, but the reality is that they’re busy proposing even more taxes - including carbon emission taxes that will stifle what little manufacturing is left in the country, the costs of which will be borne by all.

The markets have figured out that this Administration isn’t going to help them out anytime soon, and there’s no reason for them to show any confidence in the markets either.

There is going to be a reckoning, especially as some of the biggest names in corporate America are reduced to penny stock status - Citi - or worse - bankrupt - GM. A problem I see is that taking the steps the Adminstration has to delay that reckoning is actually going to make the problem worse - lengthening the recession, deepening the misery, and preventing the markets from adjusting to the new circumstances.