Wednesday, March 04, 2009
Our Wonderful Economy
This morning's NY Times presents some miserable news in a wonderful way.
Make sure you visit The Geography of a Recession. The map shows every county in the country. Move your cursor over the county, and it tells you the unemployment rate there in December 2008. Cook County had an unemployment rate of 7.1% (it has certainly gone up since then!), while Bremer Co., Iowa (to choose one at random), had a rate of 3.6%. Mackinac Co., Michigan, was the highest I could find, at 24.2%.
I know I'm tempting fate here, but I think the market is near it's bottom. I just can't see the DOW going below 6,000. When it was near 14,000, a change of 100 in a day was la-de-da, ho-hum. At 7,000, a drop of 100 is serious business. The question is, are we starting to see the bottom of the bottomless pit that is the banking system? We'll see.
Needless to say, I don't know what I'm talking about. Make any decisions based on the last paragraph, and you deserve whatever happens to you! Are we taking money out of cash and buying stocks? Not yet.
I saw a clip of my favorite idiot, Jim Cramer, bemoaning the fact that the stock market has no confidence in Obama because he's raising taxes on the wealthy. Cramer is the best contrarian indicator I've ever come across. His high-pitched, high volume endorsement of Bear Stearns just days before it went belly-up is a classic. When the market was bloated with worthless crap, he saw no danger. Now that the market is down 50%, he's finally crying "The sky is falling!" Not the kind of person you want anywhere near you in a crisis.
And on that note, I need to get ready for work at the food pantry. Have a good day.