Biotech Values

[tinkershaw]

<<<Today may be the proverbial day of capitulation when hordes of people decide they don’t want to own any stocks and sell everything.>>>

I do not think so. Looking at the macro numbers today. Consumer spending was slightly up, but savings rates hit all time highs.

What this means is that there is an utter lack of confidence in the market. Instead of putting money to work, people are putting money under their bed, despite deciding to spend some more money.

this lack of confidence is forward looking. When does one get confidence to invest back in the market? Obama is giving us none. He has promised us a substantial capital gain and income tax increase. He gave us absolutely nothing as an incentive in the "stimulus" bill or in the 2010 budget. We are looking at nearly $2 trillion a year in deficits per year. Producers in the world are bad mouthed, and the entrepreneurial class is shamed in his rhetoric. He for example says he wants to increase home sales, proposes a $250 billion + program on this issue, and then proposes to cut the deductibility of interest for upper income taxpayers, who just happen to buy the majority of homes (on a dollar basis).

I am not making this political, but I do challenge someone to come forward and let us know what is being put forward to reduce this CRISIS OF CONFIDENCE?

Consumers decide to spend more, but at the same time they also decide to keep their money under their pillows. All this money sitting on the sideline, so many stocks on "sale", what else is it at this point in time but a crisis of confidence.

If so, let me know what is being done to resolve this issue? We will not bottom until a complete wipeout with this crisis of confidence IMO. A one day sell off, is likely to be followed by a small rebound and a new wipeout until this crisis of confidence is resolved.

Tinker