To be sure, of late it has definitely felt like the infamous "dog days" of August. NYC has reverted to its August stench only this recession ravaged year being experienced by far fewer people. Even for NYC in August the streets seem eerily thinned of people. Countless store fronts sport "for rent" signs and while life has been going on, its noticeably at a slower more apprehensive pace. Lots of money has been lost in NYC during the past two years and the big corporate players have cut back on T&E really hurting the local restaurant and entertainment scene. I hope I'm wrong because I love NYC but I have doubts of whether this town can fully recover from the shock to the financial markets that started late last year. Lots of professional unemployment in the city. Real Estate prices are way down. I worry for NYC.
The stock market is ignoring economic reality and during the month so far has pushed the major averages into higher ground. This curious rally marches on, but I'm afraid and worried its going to be way off a cliff. In all my years of observing the stock market this is the strangest rally I have ever witnessed. Just no basis for it on a fundamental basis. Technically, many stocks had gotten way over sold and many opportunities became obvious. While corporate earnings have on balance been better than expected they are mostly predicated on reducing costs and little revenue growth. That scenario cannot go on much longer. The American consumer must up their spending or the economy will be in constant trouble. There is no evidence that is even close to happening.
And of course, these dog days feature the daily dose of political theater concerning health care reform. I repeat from an earlier post that we are in the initial stage of a coup attempt by the extreme right wing to invalidate the last election (notice how many of these nuts now promote the "the birthier"theory) and injure President Obama politically by handing him a big defeat on health care. Honestly, the stuff being promoted by the likes of Rush Linbaugh, Fox News, The Drudge Report, and others is nothing short of stunningly distorted and hateful and in my view designed to rile of their angry right wing white base. This whole thing is becoming so obviously racial that it truly makes my stomach turn.For sure, this is the last stand for angry white overweight white men to try and get Obama. These people literally hate Obama. Why do you think these nuts are bringing guns to town hall meetings? Is that some sort of omen? Are they sending a message? I'm sure many have seen the media reports on the increased activity of private militias. What a mess!!! So mostly these "dogs days" of August I worry about my country and where it may be headed.