- The market was thoroughly hammered Tuesday. Economic pessimism and doubt over Obama's stimulus plan fueled the crash. The SP500 is now near levels not seen since the November 2008 lows. We've broken through the trading range to the downside, that had been keeping the sideways trending market in check.
- No longer.
- Internals were also fugly, with decliners trouncing advancers. The financial sector made new lows. And to top it off, the auto industry which pleaded for cash back in December because bankruptcy was too cruel of a Christmas present, are now pleading for more cash.
- Notice that theme: The government intervening to postpone the inevitable. Maybe some businesses just have to fail so that others can take their place.
- Elsewhere?
- Is the worst yet to come? But "the worst is yet to come," according to Howard Davidowitz, chairman of Davidowitz & Associates, who believes American's standard of living is undergoing a "permanent change" - and not for the better as a result of: (see link, but negative wealth and debt...)
- Obama readies his fix for foreclosures, which will probably just artificially delay the eventual end to the housing collapse. He's planning on $50B worth.
- That, and it's raining cats and dogs in Sacramento. Hey, that's good news. We need the rain and the moutains need the snow.
