Homeowners can't make their payments and now the banks can't either - unless of course you are part of the big five. Unemployment numbers are terrible and the BP oil spill is likely to bankrupt BP and cost our treasury hundreds of billions over the next decade. The May inflation numbers came in and we have...deflation for the second month in a row. While I'm sure I could find some good news it doesn't really matter - we have done nothing to restructure our financial system or to reform our out of control spending. As I wrote several weeks ago - get ready for a new stimulus - to bail out the states........and of course the details of such a stimulus started to dribble out last week.
The market may continue to zoom, but the news is not confirming it, we have major structural issues and we aren't dealing with them (get ready for housing bust II) - which will ultimately lead to a financial crisis that will make 2008 look like a toga party.
Scott Dauenhauer CFP, MSFP, AIF