- The market sunk into the close, as investors worried about the recession, layoffs, banking, blah blah blah. You know the drill.
- Of course, no one is more worried today than Mark Cuban. Ya think?
- Meanwhile, I remain long. I've got a sneaky hunch that the market is basing here in this range and another trip to the recent lows can't be ruled out. At some point, the market will anticipate an economic recovery. I believe the news will be just as dire on that day, as the news headlines are reporting yesterday's news or even breaking news for today. But the market is forward looking, and we will emerge from this someday.
- Obama will fix it, right?
- Stimulus? The cavalry has arrived! (Via lower oil prices).
Economists and politicians have been raising the stakes on fiscal stimulus to keep the U.S. out of a severe recession.
Yet very quietly, the cavalry has already arrived in the form of a roughly $90-a-barrel drop in oil prices over the past four months, slashing costs on everything from gasoline and home heating to business energy expenses. That translates into as much as $300 billion in stimulus - more than 2% of gross domestic product - without lifting a finger or adding to the budget deficit.
“I’m amazed that not more is being made out of it,” said Nariman Behravesh, chief U.S. economist at IHS Global Insight.
- Well, I've been saying it, Nariman. But then again, most people who come to my blog are here from Google search results for "Dallas Cowboys Cheerleaders" or "Grace Park Maxim."
- Okay, not all of you.
- I've mentioned that the stores, restaurants, and casinos sure seem packed around Sacramento. People suddenly have an extra $40-50 a week in their wallets. Heck, their homes were foreclosed on months ago, if not last year. They're back in apartments with lower expenses.
- So I expect that at some point the estimates will be wrong and anlysts will be surprised at consumer spending. Hopefully sooner than later.
- Sarah Palin dispenses fashion advice. Nice.