So it looks like the DOW is going to close between +300 and +400 today, closing way up for the second day running. In particular, Citigroup is a big winner among the financials, currently up over 60% now that government money is involved. (http://www.breitbart.com/article.php?id=D94LH3080&show_article=1)
It seems like the market likes the government hand to give the reach-around, but I wonder when that's going to begin to chafe?
I'm not sure when people started thinking that it was a good idea to spend our way out of a debt problem, borrowing more and devaluing the money even further in the process. The whole concept is ill-conceived and will only put off the inevitable.
Thing is there's always a bump for a day or two when the government sugar daddy comes to visit, but soon enough reality sets back in. Keep an eye on Citi. They've got some fundamental problems, and they'll come back to haunt them in a day or two.
I wonder when we're going to start letting dead and dying companies die? At a certain point, the dollar will be worth nothing, and these companies will be addicted to the government teet. What then? How many times has Citi been bailed out already? Three in recent memory (at least twice by the Middle East, and now by the Federal Government -- in addition to the general industry bailout). How many more times? When will they be able to stand on their own? How many more trillions will they suck in before giving up the ghost?
My guess? We'll keep dishing it out until there's nothing left: