Monday, March 30, 2009
Dow drops 254 points; it is going to be a very bad week for investors with terrible economic news
Investors who were measuring all the financial ground they had made up the past two weeks in a Bear market rally found a lot of their profits erased today.
The Dow closed down more than 250 points after falling more than 140 points on Friday.
Look for the rest of the profits to be erased by week's end with a new unemployment rate of 8.5 percent for the country and President Obama receiving a global dissing for his policies(including protectionist ones) at the EU 20 Summit in London.
China's continuing push for a global currency to replace the dollar will soon deliver its own economic reprecussions. And remember, the Chinese now own us since our government is printing money for all the new spending. To continue purchasing our debt, the Chinese can demand very favorable terms.
Who knew that the Communists actually won the Cold War?
After those hurdles, first quarter corporate earnings will start coming out after the first week of March, showing the economy is in much worse shape than anyone imagined.
It is going to be a very depressing several weeks on Wall Street and proof that the financial markets are no place to leave your money for any sense of security or return.