When the market masters want and expect a Santa Rally, damn it, they can get one!
And, for the most part that's a good thing.
Still, the dollar is at another record low; and those holding bonds overseas are watching their savings eaten away with every dollar drop.
My sense is that the money managers want a rally in December, no matter what happens; thus they can claim their year end bonuses and fees, and set the suckers up for a January Effect Rally.
Besides, a punk stock market is no way to get Bubba to roll over; and let Dubya cancel his social security pension next year!
So, you better not cry, Bubba, and you Better not Pout! Santa's comin to town, and it's called one party government!
The market masters have it all under control.
And, just keep those 401k checks a-comin' in! OK?
Still, it's curious as to what foreigeners think of all this? I mean Dubya is "in your face" about everything nowadays. Even recently insulting his Canadian hosts about "still standin" after eating some Canadian Beef! Clearly, Dubya is going to take off the gloves and spit it out unfiltered in his lame-duck term. Dubya Unflitered! Are we ready for that?
Anyway, the Dollar can't drop fast enough for all the Euro Speculators.
DUBYA AND DOLLAR ARE THE TWO THINGS MOST NON-BIBLE BELT FOLKS LOVE TO HATE THESE DAYS..................
And perhaps, the sell off in oil was just some good old fashion profit taking after the big run up.....?.
Still, some short covering should kick in soon, what with oil down a whooping 12% in ONE WEEK!!
WHOLE LOT OF SPECULATION GOIN' ON THERE!
But, the macro-economic environment is pretty muchl set in stone.
If Greenspan goes another 25bp in December; the markets will continue weak, and the dollar will decline more.
If Greenspan "shocks" the market with 50bp; the dollar could rally big time, like in the old days. And, bonds and stocks could rally right along side.......
Does the G-Man have the courage to do 50 bp now? I doubt it.....
But, if the Euro is at 137-138 by the next Fed meeting, all bets are off, he may have no choice but to give the dollar speculators some good ole fashion Fed Shock Treatment!!
Remember, back in the old days when the Fed was "supposed" to "take the punch bowl away?"
WELL, GREENSPAN'S ENABLER ROLE AS "DESIGNATED DRIVER" FOR THE GLOBAL ECONOMY MAY BE COMING TO A DISMAL END;
IF, HE DOESN'T GET AGGRESSIVE ON RATES, AND REAL SOON!
THIS "MEASURED PACE NONSENSE" IS JUST KILLING THE DOLLAR.
AND, SOONER OR LATER, THAT'S GOING TO FEED INTO OIL; THEN INTO STOCKS; THEN BONDS......etc.
Advice to the G-Man: Look at your job description one more time, please.
Postscript:
READ IT AND WEEP FOR THE ONCE MIGHTY DOLLAR! Soon to be, a/k/a, "The American Peso."
http://www.bloomberg.com/news/markets/currencies.html
