BernieHund: The Political Watchdog

If the stock market were a person it would be diagnosed as bipolar, the newest name for manic depression.  Following a weekend of depression, today the market soared in its most manic phase.  The Dow rose 400 points on the news of a 3/4 point reduction in interest rates, now down to 2.25%, the lowest in three years.

The outlook overall is still gloomy as more houses are expected to go into foreclosure over the next year.  Depending on who one listens to, we are heading into recession or we are just slowing down.  The economic downturn will last a few months or as long as two years.  The fact is that no one knows.

In the darkness of the unknown, the stock market goes up and down with the rapidity of a bipolar disorder off its medication.  The risk is that as the dollar continues to fall, the Federal Reserve Bank can cut rates little more in the future.  As inflation comes into play, have we used up all our antidotes?

To believe that today’s interest rate cut will stop the bleeding or that the 400 point gain of the DJIA is an indication of the future of our economy would make one foolish.  In truth we are in an economic situation that is nothing short of a rough ride on stormy seas.  For all the upswing of the day and the moment of sunlight that shone on the economy, I will only remind us all that we may be in the eye of the hurricane.