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24 meets the Matrix (or how the economy turned out to be nothing more than… an economy)

It turns out we didn’t need Jack Bauer after all.
 
At least not yet.
 
Reading yesterday’s headlines about the economy, I myself started to think that he could be our last hope. After the day was over, my wife and I went to the grocery store and would you believe it? Everything was still there, the lights were on, the muzak was sickly sweeter than ever and for a first time I actually liked going shopping.
 
My head started getting clearer. But of course! One of the biggest “rules” of the market – the largest spikes usually come a day or two after the largest drop.
 
Law and behold, today’s gain of the Dow proves it – it’s back up with more than 450 points regained back from that 750+ drop yesterday.
 
But, professor, that’s not always the case, is it?

No, it’s not, but it turns out that more often than not, it is.

When the fundamentals are the same, spikes are obviously caused by irrational decision driven by fear, uncertainty or speculation.
 
I am not saying that our economy fundamentals are strong (Even George W. Bush stopped trying to convince us that everything is alright—I am confident that it will be alright, but at least at this point it isn’t.) But these fundamentals haven’t changed on a dime (pardon the punt) yesterday, therefore the movement of the Dow was fully expected to reverse its course, as it did. At least for a day.
 
Is it a glitch in the matrix or do I have a déjà vu? Didn’t the Dow recover from being down about 1,000 points just last week on AIG’s troubles?
 
When life serves you lemons, make a lemonade. Yeah, but I was more in the mood for grapes – they had them for 99 cents a pound. An offer I surely can’t resist and why would I? Bread comes already sliced, tomatoes are back on the shelf, Monday Night Football starts in a few minutes, and my wife doesn’t mind watching it with me. Life is good.
 
Oh, and don’t believe them, when anyone is saying how our savings are in danger, if not already gone (what savings, right?). Savings abound! Just look at your local supermarket’s weekly flier and the myriad of savings presented to you!
 
Fill up the cart, America! We’ll be alright.

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One Response to "24 meets the Matrix (or how the economy turned out to be nothing more than… an economy)"

  1. I think that everything will be fine. Gas prices are falling to say the least. It’s a good start to a happy end. 🙂

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