I'm posting today simply to say I still consider this a fully active blog and it is still my intention to post approximately twice per week regarding economic events that could influence the value of the dollar, and any other thoughts on the subject that cross my mind.
It is just that news regarding bailout activity has been distinctly inactive—real factual news as opposed to commentary or speculation which is abundant—and replaced by hot air around health care reform. With nearly a trillion dollars of taxpayer money being put on the table and up for grabs, naturally, those who stand to profit from the pending health care legislation have cranked up lobbying and media efforts such that events unfold in their favor.
New economic bailout activity may have slowed down, but bailout activity already in the works is in full swing. Since the last two major bailout events--the TARP and Obama stimulus—were followed by precipitous market declines, it may be policy makers now are bending over backward not to upset this house of cards.
What happens from here? Is this the beginning of the recovery, or is this an overstretched rebound? If it is a recovery, it is a tepid an incomplete one. There is still significant unemployment and the mortgage situation is still in the toilet and will get worse as the under-reported Alt-A market continues with their adjustments until 2012.
But for those who think good times are here again, I guess all I can really do is use such a time to take a little break.
As the stock market grows, the dollar falters. Neither is back to the 2007 highs for the DJIA or 2008 lows for the dollar.
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