It's the best week for the stocks since November! So say we all:
- Best week for stocks since November. Fears have eased that the nation's major financial institutions would collapse or at least require additional government lifelines in order to stay alive. Market veterans were quick to rein in hopes that the market would chart an uninterrupted recovery but many still saw the four straight days of gains a good sign. It's good news, unless it isn't.
- Wall Street chalks up 4-day rally. A sharp rebound in bank shares and easing worries about the economy pushed stocks to their best week since late November. The market shot up in one week as it might in some years, with major indicators chalking up gains of around 10 percent. Reminder: We've had some sharp rallies in this bear market before.
- How will the Republicans spin the best week in the market since November? (Read the comments...)
Government tax revenues lag the economy by a bit, as it takes awhile for revenues to hit the coffers. Yet, even with bad times evident, governments usually have no clue that it could possibly impact them.
- The state of California, after closing a $42 billion budget gap with spending cuts and tax hikes, confess that they may already be $8 billion in the hole. "Even in the few weeks since the budget was signed, there have been a series of negative developments. Our updated revenue forecast projects that revenues will fall short of the assumptions in the budget package by $8 billion. Consequently, the Legislature and governor will need to adopt billions of dollars in additional solutions in the coming months to bring the 2009-10 budget back into balance."
- The city of Sacramento comes up $168.5 million short in general fund.
What does that all mean? More spending cuts? More tax hikes? More reductions in government worker pay and benefits? All of the above? Maybe if the market rally is for real and predicting an economic revival soon, perhaps the government tax revenues will improve in the years ahead. Well, maybe none of that is today's business. It is Friday in a pre-Spring weekend where the most important thing going on is NCAA March Madness teams selection on Sunday.
TGIF! Thank God it's Freida! Have a great weekend!