All the govts focusing on economic growth and stimulus packages.Anything else is BS now severe liquidity issues are resolved and companies are just positioning for the recession. This is the time to buy stocks now because tech companies are started to lay off people, they are the last one to lay off in a recession. Most of the financial lay-off are result of mergers and the leverage coming down.
Stock will start to discount economic recovery 6 months out, you want to buy now. Layoffs are good for stocks and bad for employees.
I think we may not have seen the worst until next January when more retail stores closed and layoffs but you're right about the market being always ahead of itself.
If all these bad news are priced in, we should begin a slow recovery. However, there may be some explosive days of market shooting up. THe shorts will take advantage of it. I really feel that they should squeeze the shorts out first before we can recover.
We cannot begin to recover until all the bodies are found and accounted for. The thought of a fast recovery in light of current market conditions not only here but across the globe make for massive shifts to follow. I do not wish to take a stance for one side or the other but when we have 10 to maybe 14 million people out of work and unable to find employment, that's a problem. When tent cities are cropping up, that is certainly a problem. When the 2 largest automobile companies are on the brink of collapse, that is a problem. When those firms that supply the auto business will have to travel a very rough road and in the end they too will perish. it just goes on and on. I watched a woman go through a myriad of credit card rejections at the supermarket until 1 finally hit!!!! The total bill she was trying to pay for was 54.00!!!! Not good news. Cars repos are escalating, credit card debt running toward a crash--people cannot pay. subprime loans, really no end in sight for them and now with unemloyment hitting new highs even the ceo's have to go because there are no emloyees to look after. No business to run. now, i do believe we can and will pull ourselves out of the mess but it sure as hell is not going to happen in a year or two years or even 3 years-this fix we got ourselves is tragic. families are effected in horrible ways. They will find the pressure and stress unbearable. Broken families will be a major problem. Families will be torn apart------------what to do, what to do? america. The greatest country on this planet will survive, but the scars will never fully heal. our new president has inherited a most difficult task. I can only hope he can lead us out with a vision of repairing the damage done. I do not envey him.