National Debt Clock

Monday, March 23, 2009

Dow up nearly 500 on bank plan, rise in home sales

Be aware that the market reacts to two kinds of events: 1. Speculative and 2. Actual. This rise today is the former. The markets are up as a reaction to the government's bank "plan." We can see how well government plans fair when they are actually put into practice (eg AIG). While up swings in the markets can be good things, bear in mind that nothing, I repeat, nothing, has changed since yesterday. The foundations of our economy are still on shaky ground. Only time will tell if this government interventionist plan will solve this problem. I for one do not think so.

No comments:

Post a Comment