Every other day we move in the direction of a better understanding our problems and we’re able to address them. Things seem to become worse, but the purification process is running and that is a good thing.
An example: during his House Financial Services Committee testimony last Tuesday, the Fed Chairman paralleled the Treasury Secretary’s stress test to FDR’s bank holiday. The Chairman explained, “An interesting historical example is the bank holiday of 1933 when Roosevelt shut down the banks for a week, and said we are just going to check the books and open them up only when we think they are solvent. And a lot of the banks opened up pretty quick. So, it's not really clear that how much they really looked through the books, but when they opened them up again, people felt much more comfortable and more confident in the bank. And part of the proposal that Secretary Geithner put out this morning is to have a supervisory review, not only of the quality of assets reserving and the potential future losses, but also to ask a very important question: How well would the banks do in a very -- even more severe scenario?”
Nobody would have talked about this 6 months ago.
The problems are defined now but investors are waiting before willing to march on.
We look at a couple of economic indicators where a flattening seems to be underway. Too early to call the bottom. But a change we have to pay attention to.
We show copper:
The problems are defined now but investors are waiting before willing to march on.
We look at a couple of economic indicators where a flattening seems to be underway. Too early to call the bottom. But a change we have to pay attention to.
We show copper:
And the Homebuilder ETF (ticker: XHB):
The Baltic Dry Index (ticker: BDI) is another piece in the puzzle:
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