Good story over at the New York Times on the slowdown in oil drilling and exploration as energy prices have fallen off the cliff over the past several months.
O.K. – the above headline is just as stupid as the right wing bloggers’ headlines have been since January. I just thought I’d throw one out there for our team. The truth about the market this week, I fear, is that this merely a bear rally. However, I’m intrigued by profitability in some of the biggest banks (so they say). I’m troubled by China‘s premier calling us (U.S.) out today. It’s been a great week, but there’s still one helluva recession to slog through.
Okay, here’s the headline of the number one story on Bloomberg’s front page:
U.S. Stocks Decline on Buffett’s Remarks, World Bank Warnings About Economy
I’m not sure why they even posted the reporter’s story, they said it all right there in the headline. Today after the stem cell press conference by President Obama, I took a gander at Google Finance’s front page. Although the Dow showed down, you could tell there had been a spike up around 1 p.m. or so. One of the stories in the feed was headed: “Shares Rocket on Stem Cell Announcement.”
This is getting stupid. Or, how about the partisans who like to point out that the market is down since Obama took office. Bubba Please!
I’m not an economist, I lost $8k one summer trying to “roll stocks,” and I suck at math. But, I do get up every morning and pay attention to what’s going on in the world. I read a lot. I can tell you this – stocks are down because we’re in a helluva recession and they’re going down some more. I said 7K for the Dow last fall and we’ve blown that. At the time I based it on one thing and one thing only: Big Bad News. I knew there would be more — and there’s more to come.
All of the official economic indicators seem to be still in freefall. The latest interesting thing I’ve heard about large institutional investors and hedge funds is that they’re buying gold – not a lot, but some. It doesn’t matter what Warren Buffett or Rush Limbaugh or Dalai Llama says on any given day. We’re in this for awhile.
Final thought: One thing we don’t need is the media going all drama on us. I personally would like to hear the Warren Buffetts and Timothy Geithners of the world talk us through this thing. I also know these guys are going to clam up if every move they make is laid out over a chart of the DJIA. We’re not hearing enough from financial wizards in or out of government. I hope the media doesn’t turn them completely reticent.