US equity markets were off to a crummy start after taking a breather for President's Day weekend. It's hard to put a finger on exactly what the new "fear" is rippling around the world.
The Wall Street Journal and
Bloomberg both pin the blame in the sell-off on fresh fears about financial stocks and Western Europe's exposure to the more fragile Eastern Europe (included in a new Moody's report.) Of course, if you hadn't factored in the probable insolvency of many financial institutions around the world into your investment plan for the year, then you probably haven't been keeping up with current events. Then there's always more fears about the possibility of a GM bankruptcy filing which could come any minute as the US manufacturing beast is set to present its viability plan to congress again. It is perfectly viable, just as long as it can get a couple of more bucks from the taxpayer.
What to make of the market rout? When will the relentless selloff end? Since I don't know the answer, I will post a range of possibilities via a multiple choice quiz. Feel free to play along:
a.) When Tim Geithner is fired and Nouriel Roubini is hired as the new Treasury Secretary.
b.) When every single bullish CNBC commentator is fired and replaced by the crazy guy I used to work with on the options floor who had been ranting about a market collapse since 1990.
c.) When the government throws in the towel on mortgage mods and just starts giving houses away to the poor.
d.) When the phrase "We've put in a definitive bottom on Nov 20th" becomes the new "The problems in subprime are contained."
e.) All of the above
f.) None of the above
g.) I'll be in my pimped out bunker. Want to join me?
2 comments:
h. Plunge Protection Team!
Roubini 4 Treasury Secretary? LOL, at least he paid his taxes!
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