Friday, November 7, 2008

Here we go again

Tell me if you've heard this story before.

Stock plunge. Central banks lower rates. Stocks have a bump. Next day or two people realize lowering rates 1/4 or 1/2 a percent doesn't mean much. Stocks plunge even more.
It's happened what 7 or 8 times in the past 18 months. Well make that 8 or 9 times. Another round of cuts after a 10% plunge post election. And hey look, stocks will be up 1% today. Not a bad deal. Down 10, up 1.

There's a lot of talk about Clinton these days. Will Obama govern like a centrist, Clinton style '94-00? Will he go too far to the left 92-94? Anyone who thinks Obama will do anything other than concentrate power for himself is a fool. But one thing will be like Clinton. That is stock indexes will be back to what they during Clinton's first couple of years. That you can bet on.


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