It was yet another treacherous day on Wall Street today, with the Dow shedding a whopping 411 more points to settle at 8,282. Can it be any clearer a signal from the looks of things that the stock market apparently is not appreciative of the outcome of the presidential election? Granted, the economy's near future still looks terribly bleak, and certainly that's also playing a role. But come on. Barack Obama was supposed to be the beacon of hope. He would all but stop a speeding train, leap tall buildings, and herald in a new era of prosperity—okay, okay, I'll lay off. He's not the president officially yet.
And I keep thinking back to that statement that my co-worker said to me, who I'll let on now also happens to be the union president at my plant, on the morning of the 5th after it was clear who our new president would be.
With only one up day on the Dow to speak of since the election, that being last week Friday when we jumped 248 points, the Dow is down over 1300 points. I suppose the good news is that we're still higher than October 10th when the Dow was at 7,882. But it does suggest that perhaps what we thought was the bottom of this market may not have been. We have two more trading days left in the week, and while I think we may have perhaps a small rally, it won't be enough to give back what was lost for the week. And it doesn't seem that farfetched to me that we could very likely start off next week back in the 7,000s.
And then there's this auto industry bailout floating around.
I wrote disdainly, at my other blogsite (which often mirrors this one) http://blog.myspace.com/jimbauer601, that I thought it would be against our better interests to bail out the auto industry, despite my thinking also that I do feel it is an important jobs issue. But it's not the entire financial system that's at stake, so in my opinion it defies that free market capitalism idea I feel did not apply in the other case.
That said, I think if the auto industry bailout does happen, and I think it will because there seems to be much support for the idea amongst the democrats in Congress, it may bode well for the markets. But let's face it, the results of the $25 billion "bailout" to retool American automaker plants to be able to make smaller, more fuel efficient cars and thereby save American jobs that may otherwise be lost, won't really have an effect in the real economy for years.
Oh, for the love of God!
It's a guessing game right now, and while no one can tell the direction of the market, one can usually get a gut feeling. But I have to admit I don't know what in the hell the direction is. Maybe a little rally tomorrow? But another pullback on Friday to end the week dismally? Those would be my "guesses."
But I'm still buying the market right now however. And I'm also watching that 7,882 number. I'm looking to see if we are still past the worst of our troubles.
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THE UPRISING OF THE AMERICAN PARTY "Clearly the voters are engaged right now, at least for sure on the republican side, and what they have concluded is that the republican party has not done their job. Thus, Donald Trump gets their vote."