Tuesday, October 14, 2008
Being a lefty pinko kook, I'm always suspicious of any good financial news. Yesterday's bounce in stock prices is no exception, and it seems I'm not alone. At the Financial Times, John Authers talks about "Tigger Markets" (they bounce and bounce and bounce and bounce). Wild fluctuations in the market are expected, especially in crisis periods. Authers goes on to argue that this could be a rally, but it depends on whether the money markets unfreeze. Over at Boom2Bust, there is a summary of the writings of economists who are bringing up the specter of recession (can't they let us dance while Rome is burning?). After Paulson's recent injection of capital into banks, Brad de Long, for one, has resorted to prayer as the best means of resuscitating the financial markets. The good news is that another financial shock would rocket Obama in the polls (oops, I'm not supposed to say that).