At the FT site this morning (£walled) is this absolute gem on the subject of why the Western stock markets have displayed a mini-rally:
‘Kenneth Polcari, a managing director at Icap and a NYSE floor trader, said that Tuesday’s Wall Street bounce may have signalled the return of the bad-news-is-good-news dynamic, when poor economic data mean that the Fed is more likely to come around with further stimulus.’
And in an unrelated incident, cancer patient Fred Kowalski of New Jersey said he was “absolutely delighted” that his PSA count had doubled, because that meant the Government would now have to pay for his treatment.
Where do they find these people? Well, I’m afraid the answer a lot of the time is in Ivy League universities, in senior positions at massive global banks, working for the Federal Treasury…..and working for premium-paywalled news media.
Here at Sloggers’ Roost, we are still on the planet and talking through the main-front facial orifice as opposed to the back passage. I said last week there will be various mini-rallies, but that’s all they’ll be: this is the end game we should’ve tackled in 2004, and I doubt very much if anyone or anything can put it off any longer. There never was a recovery, because it was created entirely by governments using our money to buy stuff, or make other stuff cheaper so we’d buy it. As the Friedmanites are so fond of saying, “The markets must decide” and they have all decided: this is it, head for the hills, and lady, I don’t remember saying anything about women and children.
There won’t be a double-dip, because there was never a rise: this is a sschuss-piste fellas. You can glide gently from side to side, but not even Ted Ligety can ski upwards.
I’m going somewhere quiet to lie down now.