Still trending oh-so-slightly higher Wednesday.
Thursday, lets see if the DOW can end above 8149, that's my market for concern now, it matches the bottom of the last retest of the 8175 line area. (see yesterday's post).
Quite an amazing statement came from the FDIC head today. Under the Bush administration, I'm surprised someone broke rank on the bailout process that is occurring.
Quote from article:
The head of the FDIC said Tuesday the government needs to devise an "exit strategy" for its massive financial rescue plan to avoid artificially propping up banks and other institutions over the long term.
The very nature of giving banks trillions of dollars in direct aid and backing IS artificially propping up banks. Exit strategy? The current course exit strategy will be US Dollar collapse, THAT'S the exit strategy. The US government has taken direct responsibility of trillions of dollars of "government backed" debt. How do you exit from that? Announce one day the government is "taking back" it's promises? What message will that send?
Just Like IRAQ, America has gotten itself into a situation it had no business of getting into. And just like IRAQ, there is no exit strategy except "we will do whatever it takes to ensure financial institutions continue to operate".
The FDIC chairman would have been better off just saying "there is no exit strategy" and wait like the rest of us for events to unfold.
I'm a knucklehead blogger, and even I could see that the entrance to this mess was Ground Zero to the US decline. See Financial Ground Zero & Financial Ground Zero 2.