And so goes the DOW. I’m beginning to think that Jim Cramer is right when he says the DOW’s bottom is going to be around 6500. This morning the DOW opened pretty close to the threshold of 6600. It’s on its way up now, but that could be what economists call a “dead cat bounce.” Or it could be day traders getting in early, then selling off this afternoon before market closes.
When the DOW does hit its bottom, I do think it’s going to lay in the trough stubbornly for several months before it starts to trend its way north again.
It’s going to lay there long enough for a whole bunch of Democrats to grow weary of the White House blaming the Bush administration for everything that’s gone wrong with the United States in the last century.
Never mind the fact that Congress was firmly in the hands of Nancy Pelosi and Harry Reid and their liberal left wingers since 2006. So, my question is to all the Bush bashers, “How’s your 401(k) doing under your party rule? After all, the economy was doing pretty good when Bush and the conservatives were in charge of things.
But there’s enough blame to go around. There always is. So far no one is stepping up to the plate. Instead, all the powers that be are sounding like people stuck in adolescence. That’s what teenagers to when something goes wrong. They blame everybody else. Anybody else.
The problem for the White House now is that the Blue Dog Democrats in the Senate are about to jump ship and run as far as they can get away from Obama and his porkulus programs.
Look for Evan Bayh (D-IN) to lead the way for some Democrats to develop some type of austerity program imposed on Congress. And why not? American families and businesses are having to do this! Why not Congress?!!! It’s a drumbeat off in the distance now, but it’s getting louder and louder and more and more people in Washington, particularly conservative Democrats, become willing to calling Obama’s bluff on his spending packages.
This budget of 2009, for instance, has 9,000 earmarks in it. It may very well not pass through the Senate. It’s not looking like Harry Reid is going to have his 60 votes needed for cloture, thereby stopping debate and bringing a vote to the floor for today’s deadline. That would mean the government would have to continue with a continuing resolution. And that would mean that the government would have to operate at last year’s spending levels.
That would save tons of money all by itself. That may be a good thing. And that would also mean that the congressionals wouldn’t get their automatic pay raise of $4700!
And just an aside. You know things are getting pretty bad over at the White House when people who were in contention for administration appointments and are starting to withdraw their names from consideration. The third to do so this week is Sanjay Gupta who was asked to be Surgeon General. He’s going to keep his day job over at CNN as medical correspondent. Two others, whose names I can’t readily recall, withdrew this week too.
— Jane Reinheimer
A bottom forecast of 6500 is what I call optimism. That takes into account all the bad news we have from the first 45 days of the Obama Administration, but as they say in late nght commercials, "But wait, there's more! You also get ..." Once we find out what Obama plans to do to us next, we'll have another free fall.