Friday, October 3, 2008

Something that should amuse the short term panic people

Some people pointed to the record drop of 777 (and change) points on the DJIA (Dow Jones Industrial Average) on the day the House of Representatives rejected the original Encouraging Reckless Activity Bill as evidence of the decision being a bad decision. If you use their logic, the market should be up today. Up a lot. The market should be up this week. Up a lot. Here is a chart of .DJIA for the week. This is what a lot of people refer to when they discuss the market.

Today, Friday 10/03/08, is not showing up on the chart, but I expect that will change later on. Today's close of 10,325.38 is 40 points lower than the close for Monday of 10,365.45 - the lowest point for the day. If that was a justification for listening to the market and passing the bill, what does this mean?

Maybe it all means that paying attention to the short term fluctuations, even when alarming, is a bad idea. Not that a bad idea would stop Pelosi and The Bush.

Pelosi: "Gee Bush, what do you want to do tonight?"

The Bush
: "The same thing we do every night, Pelosi—try to take over the world."

I still am continually amazed at the ability of the Speaker of the House to refrain from saying Narf on TV.

Addendum 17:26 10/03/08 -

The market will probably bottom out about here, but not because of this action by Congress.


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