No one on the street appears to be looking at what is about to happen here. The housing market is still an absolute mess here. The parts of inflation that the government doesn't count - food and fuel - are nearly killing the average worker because they are purchased like most of the stuff we purchase - with net dollars so the effect should be measured against the income that is left after taxes and housing and other unavoidables.
Now the first thing that the republicans want to do to fix this mess is cut taxes and widen the deficit. Do you hear that Ireland? You have shown how this type of governing and economic policy is a disaster and we have bozos elected with the will to follow your lead.
Tuesday I wrote about the potential for a forced bailout of the banks in Ireland and my concluding paragraphs were:
We sit on the far shore of the lake on this one but the ripples from the Irish rock hitting the other shore are already here. The market hasn't done well of late (as if this Irish news is a surprise to investors) and I can tell you what is going to happen in the next few days in our market. You watch:
1. Today (Wednesday) will be a down day or neutral at best
2. The EU will announce a bailout and force down the Irish throats
3. Business here and there will demand exceptions to the forced austerity and decry government intervention
4. The market (our NYSE) will soar on the good news that the crisis is over.
You watch.
Wednesday has passed and here we was Thursday:
1. 14 pt. change on the Dow - a neutral market
2. Yup
3. reactions so far from the banks and unions
4. Dow soars on news
I hate being right.