What Is Going On

Clearly something is wrong out there. Jobs are rare. Many believe that jobs are not coming back and that millions will simply slip into the ranks of the newly impoverished. Europe is in trouble. They are facing serious insolvency issues, in a sense they are still in recession. They have similar issues.

The markets have been weak and slipping this past month and there doesn't seem to be anything that will support a new climb to let's say 11,000 in the DOW.

What's going on. If I were to sum it up in a word I would say the word is stagnant. We are stuck. The world is in a state of constipated economic malaise. Nothing is percolating.

The linked article below talks about double dip, but a reading will provide contradictory insight.

Reuters: Pricing for double-dip

Reuters asset allocation polls for June showed investors cutting stocks a bit, but retaining a long-held overweight bias toward them.


Citi's composite world bond yield is only 1.8 percent, while short-term U.S. and euro zone yields are only 0.6 percent.


"A number of factors have been in place preceding previous global earnings recessions including an inverted global yield curve, excess inventories and unsustainably high profitability. None of these factors are apparent now..."