So where are we? The markets yawned at the President's stimulus plan, which is short on details; we are now at the lows of the day, the month, the last 52-weeks on the S&P 500.
Any stimulus plan is good news, but the problem is the Street wants MORE: more stimulus, more cuts, more fear--more sense of a bottom that really is not yet present.
The reason a sense of a bottom is not present is because (as mentioned earlier):
1) It's still not clear how much the U.S. consumer is slowing down, all we know is that several companies this week (Citi , and our parent G.E.) took provisions for eroding credit quality. GE and IBM talking positive on 2008 is good news, but there is a sense that events are still being played out.
2) The extent of the global slowdown is not yet evident. Bears say it is coming; there are already signs of weakness in Europe, particularly the U.K.
You can see this in the European markets; the FTSE (the main index in the U.K.) is just above a 52-week low; France is already at a 52-week low; Germany holding up better. Hong Kong not at a low, but still 20 percent off its November highs.
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