If you remember on Monday this past week, everyone on Wall Street was in a great mood. The market had zoomed to over 400 points on the good news. The good news being that, certain banks and lenders would be allowed to use their loans albeit bad loans as collateral, to borrow new money! That was the good news; those with crystal balls must have been laughing. On the other hand it would seem anyone with common sense would have been running for the hills with a bag of groceries and the wife and kids in tow!
It’s now Friday and oil has soared to almost a hundred and twelve dollars a barrel and gold is at a thousand an ounce and the stock market is headed down for other reasons. It seems some of the players, as in big traders and money market funder’s are in dire need of that thing that keeps you and I Joe America the most happy every Friday, “Cash!” Seems liquidity was an issue, but not to worry. They got bailed out as usual. The good ol’ boy network comes to their aide again! I mean after all it has the blessing of the Federal Reserve, what could go wrong!
This past week if you have been watching the money you haven’t been very impressed by those who handle money to make a living. The markets are up and then they are down. The President say’s we are not in a recession and everyone from Wal Mart to you Aunt Minnie says we are. They don’t even announce manufacturing jobs lost each month any more, but instead report jobs in the service and health care industry are up! We have lost so many manufacturing jobs in the in the last year that the only good news they can find is on the fact we are all growing older and need care.
But the eternal optimist need not look too hard for good news. Given the fact that the dollar is at its lowest, it appears some around the world are looking here to build their businesses. With the global economy creating money with no nationality that can be electronically transferred in seconds from continent to continent people making dollars don’t want to spend them elsewhere because they loose buying power. So it only makes sense they are looking to spend our weak money here! One day an empty factory in Michigan, the next day they are making widgets for the world. Hard to believe that soon countries may start outsourcing to the US of A! Let’s keep our fingers crossed on that one.
On a final note, this week you should have gotten your letter telling you a check was on the way as part of the stimulus package. It cost a bit under forty eight million to send that letter out telling you, that you were going to get the cash in May. Lewis Black summed it up in when he said, if anyone had any common sense in the government, they would have put the check in that envelope.