On his Crunchy Con blog, Rod Dreher ponders if the stock market is in the midst of the same sort of dead cat bounce that marked the immediate aftermath of the 1929 crash:
Jim Manzi points out that six months after the 1929 crash, the Dow Jones had regained what it lost, causing premature optimists to declare that the worst was behind us. Something to think about with the Dow today back at 10,000. Manzi digs into the reason for the stock market rally, and expresses fears that we are deluding ourselves. There’s a race on, he said, between the US government borrowing what it can to keep the economy afloat, and the private economy, which needs to get back on its feet before government can’t borrow any more to artificially inflate the economy. Manzi:
I don’t know who is going to win this race. But then again, neither do you. Any prudent company or individual is planning for a 2010 that could fall anywhere from “Well, we got through that crisis, and now we’re back to growth” to “It’s 1931”.
Update: “Michael Moore: Hey, Let’s Crash the US Financial System By Selling All Our Stocks And Taking All Our Money Out of Banks, That Will Show Those Fat Cats We Mean Business….”
Someone’s been channeling his inner Soros…