Daily Investment Interpretations
July 5, 2010
The markets have now closed below their 200-day moving averages and
their 300-day moving averages. As this article recounts, it wouldn't
take much to initiate another bear market drop (down 20% or more): Stocks: Pursued by a bear,
and Vulnerable spot for market.
This article argues that, given that employment numbers are weak, Watch for GDP weakness.
This week's issue of Time Magazine includes an article entitled, "The Best Laws That Money Can Buy". The article discusses the lobbyist explosion in Washington, mentioning that, "In the 80's, when lobbying was a cottage industry compared to what it is today, so many lobbyists swarmed the corridors like the one outside the conference room that the press dubbed the halls Gucci Gulch." Tens of thousands of lobbyists now wheel and deal over our legislation. For example, the legislation creating the Federal Trade Commission amassed 8 pages in 1914. The 1935 Social Security Act ran to 28 page. The current Financial Reform Bill resides in 2,319 pages of weasel-wording and legalese. Obviously, no Congress(wo)man knows what's in that bill. It had to have been written by teams of lobbyists. There aren't enough Congressional Assistants to handle the task in the time available. It mentions the fact that "our democracy has become a game for insiders".
Stock market futures are down ⅔ % tonight.