This is chart of the Dow Jones over the last month..
What does it look like to you? I'll tell you what it looks like to me: a chart of a meds administered to a manic depressive.
Feds reduce rates: up 400 points. Feel nervous about Bear Sterns: down by 250 points. Fed reduces rates: up! Don't like the employment figures: down!
And it's not hard to predict. All you have to do is go to the Economic Indicators Calendar. Thurs. some sort of unemployment claim number comes out. If that goes up: Dow Down! Next week: Consumer Confidence is released. I'm no economist, but I'm thinking that will be down and so will the Dow.. probably by quite a bit.
Could we swing a little more with the wind? This is psychotic.
And let me tell you something else.. I am none too pleased as a taxpayer that we're picking up $30 billion in expense to take all the really scary assets off of Bear Sterns books for them. What could possibly be so scary in Bear Sterns books that even after taking away the worst $30 mil, they will only pay $2/share. Is Morgan feasting on the carcas or is there more scariness to come?
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