Now we hear from another entity that affects investor's views -- Moodys. Here it is reported to be set to lower rating of major banks worldwide. On top of the dropping commodities and the Fed getting an extension of Twist to flood the market with dollars, the market is probably reacting accordingly: DOWN. I've read a few articles with conclusions that company earning re tracking fine, but, in all cases growth is NOT in the near picture. It is growth we need to get out of the hole (positive future, jobs, increased spending). We need this administration to stimulate GROWTH to generate a positive future for American businesses. Along with that comes future investments, hiring, spending. This is NOT the policy OBlunder takes though. He'd rather continue to want the Government to spend more to increase GDP. This has not and will not work. All governments in the world are faced with austerity spending measures. America has just been too dumb, too long to face the piper NOW. We are getting in dangerous water. I feel a new easing by the Fed, QE3 if you will, is NOT the way to go and will do nothing more than QE1 and QE2 have: nothing but a short-term spike that dissipates and leads to a worse state. Expect volatility -- ah, the summer heat brings out the market blues.
Ouch. Here are the downgrades reported after hours. I won't even pretend to know or understand the deal with derivatives and other impacts to the banks. If you understand, let me know.
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