I wanted to suggest that the market is now pretty firmly bottomed. I am sure those in the S&P 850 CAMP, whatever that is, will disagree. But fundamentally the correction has been an absurd overselling. Some of this is no doubt the Morgan troubles and that will be going on for awhile but the Euro nonsense is so overblown and so far from reality that it should have no effect on markets. It is one big soap opera. Miss one month of shows and you come back and Mary still have the gun at Mark's face and still hasn't pulled the trigger.
So it is with slow motion europe and the shufflefooted losers. If you haven't learned a think about Europeans by now, you might at least appreciate why many Americans had no interest in war in Europe defending the shufflefooted. That sentiment shifted with Pearl Harbor otherwise it is doubtful we would have gotten involved in Europe. Sometimes it is more patriotic to mind your own business.
Europe is the tower of babble. How bloody provincial is it that there is not one common language? Imagine if every state in the US spoke a different language. This is probably true of Washington DC. until you can translate the btch slapping dialect into something coherent.
But Europeans make a point of being provincial and so this common currency idea is an attempt to break their babble traditions. But all the countries are socialist by degree so once again, the only reason for a common currency is Capitalism. They may as well speak different languages and have different currencies
and muddle on their own socialist fantasy.
I am very encouraged by the price of oil and Morgan getting kicked in the streets. It is unlikely they will play in the oil patch for a long time. This will help most all US businesses which are service based. It will be a huge shot in the arm for consumers which will stimulate some business activity.
Stocks are cheap. Earnings
excellent. The bond market stuffed to the gills. If idiot Bernanke would eliminate twist, the bond market, a huge bubble would burst and money will flow into equities. I would say the bond market is at critical mass now and unbelievably dangerous. In fact while Europeans and the Fed through Twist, are buying bonds, Pimco and others are selling them off.
Could markets go lower? Not unless you want to buy into Buz's end of the world scenario. I don't see that at all. I am seeing big buyers at the end of the day, putting in huge block orders. Somebody with big money isn't particularly worried about things.
No matter how you look at the potential collapse of the Euro, its good for the USA. Money is pouring in from europe. Oil and energy is all purchased in dollars. So its a windfall. With gasoline going down this is the best economic news we have had in 3.3 years since the fire starter race baiter took office. Finally energy cost
might come down substantially for summer. Goldman and Morgan are usually sending it sky high by now. So people can travel, and still have some money to spend.
