The equity markets have recovered more than 20% from their recent lows. Some companies are up as much as 50% or more. The markets generally are six months ahead of the true news, so should we be optimistic? Is the light at the end of the tunnel? Should we be excited about the prospects of $500 billion of government projects and an additional $2 trillion of liquidity?

As noted by Davis Berman on his blog: “As the Wall Street Journal’s MarketBeat noted on Tuesday, the auction on three-month Treasury bills on Monday yielded a mere 0.005 per cent – the lowest yield since 1941. But here’s the really wacky part: Traders noted that the yield on three-month bills dipped into negative territory on Tuesday afternoon, as in below 0 per cent.”  http://www.theglobeandmail.com/servlet/story/RTGAM.20081209.WBmarkets20081209143427/WBStory/WBmarkets

So great optimism on the equity side of the equation and absolute fear on the side of bond investors……

A friend mentioned today that he heared murmers that gas may go as low as $1 per gallon.  When was the last time we saw that??? What does that mean about our economy???? What will our labor be worth??  What will the price of milk and eggs be?    How bad will the overall global economy have to be to allow gas prices to fall so low???????????  I am afraid to speculate? What do you think???

Will the market retest lows?  Is there sufficient cause for optimism to have the markets hold steady and rise through Inaugeration Day?

Will unemployment continue to rise?  Will housing prices continue to fall?

Will Washington really save Detroit?

Did Washington really agree to absorb approximately $300 billion in losses at Citigroup?

Is this sane or insane?

Help me!!!!! I am confused.  Leave your comments…..

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