Euphoria managed to out-run swine flu last week as the epidemic-du-jour, with "consumer" confidence jumping and the big bank stocks nudging up. The H1N1 virus fizzled for now, at least in terms of kill ratio, though we're warned it might boomerang in the fall with a vengeance. No one was surprised to see Chrysler roll over like a possum on a county highway, but the memory of their muscle cars will linger on like a California surfing song. Here in the northeast, where Sundays are not spent at the Nascar oval, the spring foliage reached the tenderly explosive stage and it was hard to feel bad about anything.
For now, the "bottom" is in -- that is, the bottom of this society's ability to process reality. It may continue for a month of so, even after the "stress test" for banks is finally let out of the massage parlor with a "happy ending." But events are underway that are beyond the command of personalities. We're done "doing business" in all the ways that we've been used to, but we just can't get with the new program. Let's count the ways:
Read on...
Is the bottom really in? The swine flu didn't even make the front page of Tuesday's Globe and Mail. Instead the headline reads: Investors flock to stocks as market sees some good news. The leaves are coming out on the trees. Peacenik walked by a beautiful Magnolia tree in full bloom on Peacenik's way to work this morning. Its spring.
But is the bottom in? The auto industry is still in its death throes, with GM likely to soon follow Chrysler into bankruptcy. Many of the biggest banks are still bankrupt. Almost every sector of the economy is still lining up for bailouts. The commercial real estate sector is tanking. The world is past peak oil. Unemployment is soaring. The black hole of debt, containing more debt that the whole world's GDP, is still hungry. None of the structural issues that caused the financial collapse have been resolved. They are being ignored.
Is the bottom in? Jim Kunstler doesn't think so. Peacenik will stick with Peacenik's lottery tickets for future security, cash in Peacenik's pockets, Kraft dinner in Peacenik's cupboard, and a pitchfork by Peacenik's bed. Peacenik wishes all the best to anyone trying to time the top of what is a classic bear market rally.
For now, the "bottom" is in -- that is, the bottom of this society's ability to process reality. It may continue for a month of so, even after the "stress test" for banks is finally let out of the massage parlor with a "happy ending." But events are underway that are beyond the command of personalities. We're done "doing business" in all the ways that we've been used to, but we just can't get with the new program. Let's count the ways:
Read on...
Is the bottom really in? The swine flu didn't even make the front page of Tuesday's Globe and Mail. Instead the headline reads: Investors flock to stocks as market sees some good news. The leaves are coming out on the trees. Peacenik walked by a beautiful Magnolia tree in full bloom on Peacenik's way to work this morning. Its spring.
But is the bottom in? The auto industry is still in its death throes, with GM likely to soon follow Chrysler into bankruptcy. Many of the biggest banks are still bankrupt. Almost every sector of the economy is still lining up for bailouts. The commercial real estate sector is tanking. The world is past peak oil. Unemployment is soaring. The black hole of debt, containing more debt that the whole world's GDP, is still hungry. None of the structural issues that caused the financial collapse have been resolved. They are being ignored.
Is the bottom in? Jim Kunstler doesn't think so. Peacenik will stick with Peacenik's lottery tickets for future security, cash in Peacenik's pockets, Kraft dinner in Peacenik's cupboard, and a pitchfork by Peacenik's bed. Peacenik wishes all the best to anyone trying to time the top of what is a classic bear market rally.
