Oxtail_IHB
New member
Ok, so the stock markets are raging and happy days are here again! Headlines proclaiming real estate bottom, all the bulls popping champagne. So what's it going to take to bring the markets down to Earth?
Unemployment? Even the bulls concede it's going to keep going up. GM just announced more layoffs. How long can the rally last in the face of double digit unemployment?
Bank failure? Calculated Risk has all that info about the 3 or 4 big regional banks that should have been taken over, but haven't yet because they're so big. Enough bad stuff on their books to wipe out the FDIC?
Bad earnings? At a certain point cost cutting and "losses lower than expected!" can't sustain a rally. Can it?
Swine flu? It's caused some headaches in the Southern Hemisphere. Might put a little scare up north when flu season arrives.
Something else entirely?
I see that consumer spending is up even though incomes are down. It would make me really sad if we came out of this mess without learning any lessons from it and just started Consumer Debt Orgy, Part II.
Unemployment? Even the bulls concede it's going to keep going up. GM just announced more layoffs. How long can the rally last in the face of double digit unemployment?
Bank failure? Calculated Risk has all that info about the 3 or 4 big regional banks that should have been taken over, but haven't yet because they're so big. Enough bad stuff on their books to wipe out the FDIC?
Bad earnings? At a certain point cost cutting and "losses lower than expected!" can't sustain a rally. Can it?
Swine flu? It's caused some headaches in the Southern Hemisphere. Might put a little scare up north when flu season arrives.
Something else entirely?
I see that consumer spending is up even though incomes are down. It would make me really sad if we came out of this mess without learning any lessons from it and just started Consumer Debt Orgy, Part II.
