How long can the stock market stay in denial?
Jobs: down. Housing: down. Consumer confidence: down. Manufacturing: down. Service sector: down. Corporate profits: down. Dollar: down. Bear Stearns: decimated.
Stock market: up????
What gives? A whole lot of denial on Wall Street. The Fed is going to save the day, as it always has in the past. The problem is that consumers are up to their necks in debt. Fed stimulus can only work so many times before the fumes run dry. Housing led this economy up. And housing will lead it back down. Japan should be a good history lesson for investors, but apparently the almight Fed still rules the day.
So how long can the denial last?
