October 9, 2010

MORE LIKELY, THEY'RE BETTING ON THE ELECTION RESULT:

Misplaced enthusiasm: The Dow breaks 11,000 (Andrew Leonard, 10/08/10, Salon)

The Dow Jones Industrial Average closed over 11,000 on Friday, the first time the index has reached such dizzying heights since May 3. But with the major economic news of the day coming in the form of a deeply unsatisfying labor report, one might well ask, huh? In recent months, investors have tended toward extreme skittishness at every negative economic indicator blip. But not this time.

The consensus explanation mooted by the econoblogosphere does little to build confidence: The theory is that investors believe the latest data is incontrovertibly bad enough to convince the Fed to attempt to juice the economy with a second round of "quantitative easing."


Unlike commentators on the Left and Right, they recall how good divided government (with a GOP Congress) was for America in the 90s.

Posted by Orrin Judd at October 9, 2010 6:11 AM
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