Tuesday, October 28, 2008

Today, The Stock Market Will Soar?

When the markets plunged recently the reasoning was fear of recession. Now, just a day or a few days later, the markets are poised to soar. Could that fear of recession have gone away so quickly? Or was that never the issue, fear of recession. We have a consumer driven economy and when we are bombarded daily with news of a coming economic tsunami, well, everybody will certainly be a little more judicious in what they consume. I am starting to think that the traders have used this market for all its worth, perhaps with everything so leveraged out there the only way they can make the money they need is riding up and down on these waves thereby making even more waves. Everyone is wringing every last cent out of this thing and a return to normalcy will have to wait until after the next President is sworn in. At least we can have a little comfort in the fact that if Obama wins the press will don rose coloured glasses and project a more positive story line. However if McCain wins, there will be a concerted effort to shield the Senate and congress and lay blame on the last 8 years and retrench along the party lines. I wish McCain would come out with a flat tax and keep it low. Let the economy soar and then watch the revenue pile up. Of course that is a dream, a flat tax makes too much sense because it is fair.

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