Considering that Chrysler has filed for bankruptcy protection, which screws bond holders, and GM's bankruptcy is considered by some to be inevitable, why is the stock market rallying?
Every major index was up yesterday.
Yet unemployment remains high, and housing sales and retail sales are down while inventories are high.
Since America makes cars and houses, why is the stock market acting so optimistically?
Is it delusion, or what historians call a "sucker's market"?
That's why small investors, like you and me, eager to regain lost pensions and savings jump back into the market artificially boosting prices prematurely.
When Bank of America is told that it needs $34 billion in capital under a stress test, when those same stress tests showed that the nation’s 19 biggest banks will take on $82 billion in credit card losses in the next two years, when even cell phone companies are cutting jobs, tell me why the stock market should be so resilient.
Posts
No comments:
Post a Comment