Doddering, Teetering, Tottering - Economic Uncertainty is Killing Confidence
Finally the economic outlook is seeing some good and some bad rather than all bad, but things are not good enough for anyone to call a closure to the recession, some say end of 2009, some say well into 2010 and some say that it could take years.
Let's hope that the first estimate is more correct than the latter and let's hope that this current market rally of March-April 2009 is more than a bear market rally.
After all, we are off the bottom by 20% and by definition that means we are in a bull market, but now many are saying it looks a lot like it did in November of 2008, before the stock market retested its lows and fell off the proverbial cliffs at Mesa Verde, CO.
Good News and Bad News; What Does it Mean for the Stock Market? We see in the shipping industry things continue to get worse for instance; FEDEX profit down 75% and they lay off 1,000 people to save 1 billion dollars in costs, Rail Freight in US might be bottoming out say analysts, and French Rail Workers, Longshoremen Strike; worsening crippled freight.
And as you can see this is worldwide, as Japanese suicides increased 15% in January of 2009, with all the makings of some serious protectionism, even from those nations asking that protectionism be halted; Coca Cola; no China fruit juice company buy for $2.
5B Anti-Monopoly Law.
Both China and the middle east are on the verge of total collapse and chaos, but both are playing it like it just isn't so, as they can better control their media outlets and have much less transparency than the US financial system.
And what about the good old USA? Well, as California goes, so does the rest of the nation they say; Silicon Valley Unemployment at 10% highest since 1990 and LA Unemployment at 11% as of end of February, expected to climb still.
What about the Third World? Well we have a World Food Crisis brewing and the 1.
1 Trillion pledged to the IMF is only a drop in the bucket of what's needed, we simply cannot feed the world with the resources of the first world, as it is on the verge of collapse itself; Eastern Europe, Russia, China, Middle East for instance.
Food and water the quintessential needs for life, well, with the last years rice crop tripled in cost, it made things tough enough, then the droughts in China caused a world wheat crisis, and now the financial global situation means farmers cannot get loans to buy seeds, equipment or prepare for next year's crops.
A lot of people are going to die in the world and worse, here comes global socialism, scary stuff indeed.
Let's hope that the first estimate is more correct than the latter and let's hope that this current market rally of March-April 2009 is more than a bear market rally.
After all, we are off the bottom by 20% and by definition that means we are in a bull market, but now many are saying it looks a lot like it did in November of 2008, before the stock market retested its lows and fell off the proverbial cliffs at Mesa Verde, CO.
Good News and Bad News; What Does it Mean for the Stock Market? We see in the shipping industry things continue to get worse for instance; FEDEX profit down 75% and they lay off 1,000 people to save 1 billion dollars in costs, Rail Freight in US might be bottoming out say analysts, and French Rail Workers, Longshoremen Strike; worsening crippled freight.
And as you can see this is worldwide, as Japanese suicides increased 15% in January of 2009, with all the makings of some serious protectionism, even from those nations asking that protectionism be halted; Coca Cola; no China fruit juice company buy for $2.
5B Anti-Monopoly Law.
Both China and the middle east are on the verge of total collapse and chaos, but both are playing it like it just isn't so, as they can better control their media outlets and have much less transparency than the US financial system.
And what about the good old USA? Well, as California goes, so does the rest of the nation they say; Silicon Valley Unemployment at 10% highest since 1990 and LA Unemployment at 11% as of end of February, expected to climb still.
What about the Third World? Well we have a World Food Crisis brewing and the 1.
1 Trillion pledged to the IMF is only a drop in the bucket of what's needed, we simply cannot feed the world with the resources of the first world, as it is on the verge of collapse itself; Eastern Europe, Russia, China, Middle East for instance.
Food and water the quintessential needs for life, well, with the last years rice crop tripled in cost, it made things tough enough, then the droughts in China caused a world wheat crisis, and now the financial global situation means farmers cannot get loans to buy seeds, equipment or prepare for next year's crops.
A lot of people are going to die in the world and worse, here comes global socialism, scary stuff indeed.
Source...