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HomeObama’s Economic Stimulus Plan: Big Dig Deja Vu??
Posted by Larry Doyle on December 7th, 2008 8:00 PM |
In the midst of the current economic turmoil, virtually every economist worth his salt can make valid cases for the necessity of both fiscal and monetary stimulus. I appreciate the use of PEBO’s use of the term “investment” rather than “spending” in proposing an economic stimulus program not seen in this country since the New Deal.
Read more here as to Obama’s Stimulus proposal, “Obama Outlines Stimulus Plan.”
I hope, though, that in proposing an “investment” program, that he is mindful of certain parameters that any qualified private or public investor would utilize prior to making his investment. What are those parameters?
1. With whom am I doing business?
2. As the investor (lender), what is the credit rating of the investment and of the borrower?
3. What is the “time to maturity” … that is when can I expect to generate a return on my investment dollars? (more…)
Market Highlights 12/1/08: “Space Mountain”
Posted by Larry Doyle on December 2nd, 2008 11:05 AM |
I was never one that “enjoyed” roller-coasters. In fact the last time I went on a roller-coaster at an amusement park I went on it strictly to “surprise” my son. On that ride I closed my eyes, held on for dear life and figured that within a few minutes, I’d be back on terra firma. If I did not make it, the premiums were all paid and the family would be just fine. If today’s roller-coaster were only that easy.
While I did not get overly ebullient about the 15% move upward in the equity markets from 11/21 through 11/28, I am not reading too much into today’s 8% selloff. The fact is we remain very much in a delevering process, will continue to see exceedingly weak economic reports, and are far too focused on what is coming out of Washington than what and how businesses are handling this downturn. I still believe that we will largely remain in a trading range of between 7000 and 7500 on the downside and 9500 on the upside. Overall trend lines remain negative. Be better sellers of rallies !!
In fact, please look at this graph of the price action for the Dow over the last decade. On 10/06/02 we had an an intraday low of 7177. The market got down to the low 7200- to 7500 range a few times before holding and moving higher. We have been down there once so far on 11/20th. I think it is an easy call to say that we will revisit at least once more if not a few times. Check it out…
A quick review of today’s “lowlights” and then some commentary. (more…)
