The Economy Guy

Reality came to the market, but for the wrong reason.  GE earnings came in poorly, so the whole market tanked.  That is irrational, but so are stocks.  The market went down 257 points.

Bonds moved sideways, as did oil; but gasoline went up a little showing its independence, and stubbornness to cause all of us to pay too much.  The Dollar moved sideways too.

Gold fell $5, and is becoming a good buy again.

In the news today…..

American confidence fell to an all time low as citizens ponder the cost of housing, credit, jobs, financial turmoil, gasoline and, and, and, and …..

After the market closed……

The G7 meeting (the top 7 countries who control the wealth of most of the world) decided they would impose greater global transparency in all financial dealings so that the meltdown that happened in the US, doesn’t happen again.

This is startling news to most US financial markets, as it is a slap in the face to US financial institutions for getting us in this mess.  It’s a good thing the news came out after the market closed because the general consensus is that there will be many more instances of “bad news” coming out around the globe in the near future.

Kind of means – tune in on Monday and see what happens.

Here are today’s numbers:
Dow Jones 30 Industrial – 12,325 (Down 257 points)
10 Year Treasury Bond – 3.47% (Down 0.06%)
Euro – $1.5785
Gold – $927 (Down $5)
Oil – $110.14 (Up $0.03)
Gasoline – $2.81 (Up $0.02) - Gasoline keeps moving up, up, up, up….