CHESSNOID

The market has closed down 7 days in a row.  Today, the Dow shaved off another 7%.  We have tons of bad news coming out indicating that we are in a recession.  We have more and more economists stating the obvious who just a day, a week, or even a month ago had no clue or were just plain denial. From the Wall Street Journal:

Those cracks are quickly adding up. On average, the 52 economists surveyed now expect gross domestic product to contract in the third and fourth quarters of this year, as well as the first quarter of 2009.

This is the first time that survey forecasts for those periods have turned negative. If those predictions bear out, it would mark the first time U.S. GDP—the total value of goods and services produced—has contracted for three consecutive quarters in more than a half century. Economists put the odds of recession in the next 12 months at 89%, up from 60% in last month’s survey.

It is a challenging scenario for the next president, as the election moves into the home stretch. Either Sen. John McCain or Sen. Barack Obama likely will face an economy in the midst of recession on Inauguration Day, even if the credit crisis begins to ease. The new administration will have to get up to speed quickly, taking over the largest government intervention since the Great Depression.

Among economists surveyed, 54% said they think the next president should launch an economic-stimulus package in January.

I don’t like polls or surveys because they are unusually small samplings and really prove nothing. We have been aware what the state of our economy has been for the past year, and now that the stock markets are crashing all these experts want to weigh in their opinions through surveys. You don’t need predictions at this point. Whenever I make a purchase now, it is easy to see the high prices of gas and food. I read the reports on the growing number of foreclosures every month, layoffs, and proposals of stinking bailouts.

We are in a recession but we will come out of it. We just really need to stop our government from making it worse. Every time we see one of those two bald headed guys (Bernanke and Paulson) on TV the stock market tanks. These highly educated financial gurus do not instill confidence. They instill fear into the market because investors are afraid they will continue to muck things up. As soon as Paulson announced he wants to start buying stakes in bank, the market literally turned around and started to plummet. This is the same idiot who got Congress to approve a Fraud bailout of almost a TRILLION dollars of tax money.

Paulson maybe that friend or relative you avoid because every time you see him, you know he will ask for a hand out. LOL. The markets do seem oversold and I expect it to bounce for a bit, but any rally will be short as investors sell into it to minimize their recent losses. Everyone is waiting for the rally just so they can sell their negative performing stocks.