It’s a good thing I don’t have a heart condition, because I probably would have been dead a long time ago, and/or died several deaths yesterday. I would have been a pretty unlucky guy too, because my 401K (if I still had one) would have come back a bit today to the delight of my beneficiaries. Yes, the Market came roaring back again today, tune the tune of roughly +500 points. 24 hours earlier we were falling into the abyss without a parachute, only to realize the we really did have one on our backs after all. Well, I need to lapse into a cartoon analogy again, because I fear this is a bit like Wyle E Coyote going over the cliff with his trusty Acme Super Parachute, pulling the ripcord only to realize that it was a backpack he was wearing as sleeping bags and mess kits come flying out behind him, as he hits the same canyon floor.
Right before the bottom came out of the Market in 1929, there were a series of up and down days on Wall Street, with huge swings in both volume and in positive and negative gains in each session. Just cause we had some relief today, doesn’t mean we’re in for a great day again tomorrow or the next day. Keep in mind, the good folks on Capitol Hill will be back tomorrow, flapping their traps in the breeze with the world hanging on every word. And with every unkind word, you will watch the Market dive as with every positive word, the Market will rise. With every press conference detailing gridlock will come a crash, and with every press conference announcing hope will come a stratospheric high on Wall Street. People need to be VERY careful what they say tomorrow and in the coming days, most especially what they say publicly.
Let us not forget, these are politicians…they MUST keep talking, after all that is their job. They need the press coverage for their own re-election bids…and it’s free too! Lest we also forget, we have our heroic Presidential Candidates out on the trail as well. While I’m not so concerned as to Senator Obama’s going off on a rant, I am just waiting for the latest edition of the McCain Follies des Republiques. I mean, what else CAN this guy say and do that he hasn’t done already? Just when we think he tops himself, he goes out and does just that…in a way that came from so far out of right field, it’s across the street from the ballpark. He’s already blamed everything he could on Obama, except for the Crimean War (something McCain’s old enough to have fought in)…and I wouldn’t doubt that would be forthcoming either.
What absolutely KILLS me are the McCain surrogates, who are the most clueless lackeys I have ever seen grace an American political campaign. Between the blissful ignorance of Tucker Knowsnobounds and clueless hubris of Nancy Pfflyers, I am staggered by the sheer lies and idiocy they spew from their robotic mouths. McCain doesn’t have to worry about his health getting him, these kind folks will do it WAY before that ever happens. Didn’t these guys graduate from the Carl Rove School of Government, or were they sent to the Richard Nixon Center For The Politically Challenged by mistake? Of course we have Steve Mister Clean, the Master of the Maladroit…the guy who went on Meet The Press on Sunday and all but proclaimed that McCain wrote the legislation by hand with that old pen of his that he keeps in his shirt or coat or whatever. (I hope he removes that thing when he sends out the dry cleaning). Come to think of it, I’m starting to believe there’s a little guy in there handing him the pen, or perhaps it’s the rabbit he keeps hoping to pull out of a hat.
No matter…just as quickly as the Market came back today, it can all come crashing down tomorrow, based on a single word from someone. The situation is that sensitive. Moreover, progress must be seen on a deal for the bail out, which is now officially being termed a “Rescue Plan” as opposed to last week’s trial balloon. It’s much more palatable than “Bail out” to the American public, you know…hey, they probably spent a few million on focus groups in the past week on this subject. Let’s just hope that everyone gets together and uses their time wisely to put together something that will really help the Markets and most especially the American Taxpayer.
If they don’t, we may find ourselves like Wyle E. Coyote at the bottom of that canyon, with that familliar cartoon rock headed for us to add insult to injury after we hit bottom.
“No problem can be solved until it is reduced to some simple form. The changing of a vague difficulty into a specific, concrete form is a very essential element in thinking.” – J.P. Morgan