The S&P is at 987, just a measly 13 points shy of the magic 1,000 when even more of hell will break loose. One thousand is a psychologically important number. It represents a turnaround in the economy and a point of departure for even higher goals. More people will jump into the fray and even more will enter the markets.
The corporate earnings reports have been better than expected and investors keep talking about the real bottoming out. This is fine with us.
On the other hand, each week brings a special mix of economic data, and a bump in the road can easily send the whole mess down in a twinkle.
Several million people, enough people to populate a few major cities or states if you prefer, are unemployed. Is this the final result of the great recession. We re-enter a country with a larger poor class of people, bumped from their homes, retirement, and middle class trimmings.
This could be the entire trajectory. The poor have swelled in their ranks and the elite ranks have raked in those assets. Financial managers determined that we could use a few million more poor people, that the screws of the corporate bureaucracy could get tightened, and the ladder to elite employment could loose a few more rungs.
We'll become a nation of migrant farmers.
Reuters: S&P eyes 1,000 but could be ripe for retreat
...the rally's staying power will depend on whether U.S. data and corporate earnings provide more signs of economic stabilization.
"I still sense from the portfolio managers and traders we deal with that even though we have nice upside momentum, they have their fingers on the trigger and aren't going to stick around if some bad data comes out..."
1 comment:
America is slowly but steadily being turned into just another 3rd world colony state of the elite. The American working class/middle class is looked upon with contempt by the Corp. elite ( growing smaller and wealthier by the hr.) The Great Recession was really a Bookend event in a sense and sadly so far Obama is not the FDR figure we had hoped for. He IS NOT returning us to a more fair society, at least so far. In fact he seems confused @ what to do. Wall st. and the banksters are swimming in public $$ and are happy . They've already declared victory and sounded the all clear. For the rest of us plebs though things are just growing more desperate.
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