CHESSNOID

We may have that New Years’ rally.  The stock markets closed up based on GMAC becoming a bank and being able to get its hands on the Bailout money.

Most of the news on the economy was actually quite negative but investors ignored the headlines and bid the markets up. The economic news that stood out for me today was:

Home prices post record 18% drop

US Economy: Confidence Sinks to Record Low on Jobs, Mortgages

US holiday weakest since 1970, more retail cuts seen

That covers the economic psychology of housing, jobs, and retail sales in the short term.  In the short and long term, I fail to see how giving GM $6 billion taxpayer money is going to help them sell more cars or the current inventory that are sitting on the lots.

Regardless, if you were in the markets today you made some money and tomorrow may be another up day for you.  It is hard to say which way the markets will move in 2009 with a new President.  Let’s hope it gets better fast.