Stock Market Recap

The Government didn't come out with another multi-billion dollar program and guess what.....the market went down. What a shock!! I wanted to see a bigger selloff then just 243 points but I will take it. I honestly can't find a reason to buy any stock in this market. The best stock in the market is Wal-Mart and they suspended their repurchase program today. If they don’t want to buy, who does? Based on the 0.00% 1 month T-Bill and the 3 month T-Bill going negative today….I would say nobody.

Every single story that comes out is shocking and down right depressing. Our great Government is changing the rules everyday and finding new and creative ways to screw up. They will not be able to fix any of these problems. All the Government can do is throw more credit at the problem. Credit is the problem. It is going to take time and a lot more pain in the economy to fix the fact that every household in America and maybe the world had way too much credit. Our Government put in programs that made it easy and cheap to get credit. They didn’t take into account human behavior and thought that giving people something without earning it would be a good idea. Now they are working really hard to come up with a way to give people that haven’t earned it a 4.5% mortgage. That will not work either. They don’t know what to do and I see true fear in their eyes.

Obama wants to create 2.5 million jobs in two years building roads and bridges. That is nothing. We will lose that in a couple months. We lost 533,000 jobs in November and I wasn’t seeing anywhere near the job loss stories that I’m seeing now. I wouldn’t be shocked to see 800,000 jobs lost in December. One day this month I counted 30,000 jobs lost. That is just the headlines I saw. I saw three stories today of companies going bankrupt. I have no idea how many jobs are lost in these companies. Plus the headlines I see are mainly from public companies that have to report.


With all these headwinds I don’t understand what the “experts” on TV are talking about when they say this is a great time to buy. They have no idea what is going to happen to millions of American households when you take away the credit drug. I don’t think the withdrawals will be pretty or the recovery quick. I think the “experts” are being reckless with other people’s money just to support their positions.




We just had a major short covering rally with some help from Government programs and talk of Government programs. I believe that is over but who knows what those jokers will come up with tomorrow. I’m short and can’t find a reason to go long.

I just want to give you guys an idea of how quick the job loss headlines are coming. All of these headlines came across as I was writing this.

Hutchinson Technology To Cut 20%-25% Of Jobs, Reduce Pay 5%

Praxair Cuts Jobs, 4Q View After Demand Falls Off In Nov >PX

Electronic Arts To Miss Expectations,Sees More Job Cuts