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Tuesday, February 17, 2009

The Market On Tuesday

The news indicates that GM will receive $4 billion in bailout money ahead of schedule.

This is nothing more than an attempt to generate a market rally as the news indicated that investors were "eying" GM. Well, now they know whats going to happen.

This doesn't change anything other than put the ultimate failure, i.e. the announced bankruptcy, of the company a little further into the future. With the recession deepening, what other scenario is possible. Its not like everyone is running out there to buy a Chevy Impala and a Hummer.

GM is part victim, part accomplice of the Bush administration. Bush being the great energy crisis denying president and the hands off de-regulator, energy policy actually went backwards perhaps a few decades.

So, its real simple. We need a rally this week on news of the bank bailout and stimulus plan or we hang up the keys and go ice skating till December 2011.

Right now futures are down, so we are off to a rocky but not impossible start. I will play the role of the optimist and predict a rally. Why not...

Reuters: Stock futures signal drop; eyes on Wal-Mart
Wal-Mart, the world's biggest retailer, is expected to report a rare decline in profit....and it takes a charge for settling 63 class action wage and hour lawsuits.

Data showed on Monday Japan sank deeper into recession with its worst quarterly contraction since the oil crisis in the 1970s...

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