After todays 7.5% beat down, I think investors took a huge Psychological Hit. The Global bailout plan announced over the weekend - equivalent to 4 Trillion dollars - was probably the best chance to revive world markets. After a euphoric 10% drive and talks of a new Bull, most of those gains were erased in a single day. With strong selling into the close. From here on out, it becomes very difficult for World Leaders to juice their economies without pronounced downside risk to future debt levels or inflation. IOW, Doubling a Nations debt in one Quarter punishes future growth via debasement or tax. The Markets know this and will price it, accordingly. With hamstrung consumption committed to Bubble Debt taken on during the Peak, US Economic Fundamentals have been flushed a long time ago. The recurrent bailouts and propping are revealing themselves for what they are - a toxic stop-gap measure, that will not hold.... With each successive bleed, markets will force investors to confront what they don't want to accept - the Bear isn't going away. DOW 7000 a definite. DOW 5000 still in the cards.
Monday was euphoric relief from a 4 Trillion global bailout hatched over the weekend. Little news of consequence today and the market dumped 7.5%. That says even the Biggest Props cant hold this market up. You should be worried.
Hey, just because you watch the Crying Game in ur wife's heels and panty hose, doesn't mean the rest of us dig it. And if Kudlows calling for DOW 5000, its probably his best call yet. Are you a Bull now??
If the governments answer is to throw money at the problem and it's not working, likely they will throw more money. The contracting economies will cause reductions in tax revenues so there will have to be inflation, personally I don't think it's going to be mild either.