Il Duce's point in the State of the Nation last night was, "Hey, don't worry, be happy." It was a stinker salvaged only a bit by Knock-Out Nikki, the governor of South Carolina, who gave a ridiculous response blaming her own party and leaving mouths so agape that the silliness of Obama's babbling was all but forgotten.
As if on cue, everything in the world today was a stinker (save for the Iranians releasing the U.S. sailors, unmentioned in last night's speech as predicted), almost as if to say, "this is what we are worried about." The DOW closed down 365 and the 10-year closed at 2.07%. The worst part was that every sector was down as the equity markets went into a totally "risk-off" mode and the flight to quality was intense. Overdone? Probably, but people were looking to positive signs somewhere and found none.
Will this continue? Beats me but part of the problem is that people are beginning to realize that this time there is no institution that can turn the tide. The Fed is done; it is out of bullets and there is no one familiar to whom one can turn for relief. We re being rushed into a brave new world and therein lies the nexus of the fear. There is also the growing belief that we have not exactly been told the truth about the true state of things either by our leaders or by the all-compliant press. Trust is waning and that is the greatest fear of all.
Anyway, that's the story for today: tomorrow J.P. Morgan reports and maybe we can get back to the real purpose of this blog. I hate writing about politics but at this point in time it seems to be the the influencer (is that a word?) of all things. An all-around stinker of a day.
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