Some Optimism In This Mess

Talk about a close call, the Dow Jones literally closed tenths of a point off its 52 week low. But more importantly, a better index to value the market,  the S&P 500 closed about 40 points higher than its low. Even though it was a horrible day in the market, I find some happiness that we did not break the lows. I also find optimism for Obama's speech tomorrow. On Wednesday, Obama is scheduled to release his plan for fixing the housing market. The housing market is the basis of this whole economic mess and so I am anxious to see how the government plans on fixing it. Fixing it is the most important thing we can do right now to help the economy, so tomorrow's plan is critical - even more so than the stimulus package. Now let's hope President Obama gives some details. I'd be shocked if his administration has not yet learned the consequences of coming out and giving a broad outlook on a plan, offering absolutely no details. It only causes panic in the markets. If he comes out with a good report, expect a rally, if not, we will break the lows tomorrow for sure. 

The market has crashed many times because the government has failed to tell investors how they plan on dealing the mortgage crisis. Investors believe the most important thing to fix the economy is housing, this is what they have been waiting for.  Let's hope President Obama can deliver.

The stimulus bill was also signed into law today. While I am not a huge fan of it, I also do not believe it is as bad as everyone says. At least something is being done to help unemployment and I am glad the bill is signed and ready to go so it can start working. We've been waiting too long for something to be done to help create jobs. Stocks have been discounted a lot because investors believe the stimulus is useless. It is only a matter of time before investors see the stimulus package will work better than expected (I think the stimulus package could have been changed to work a lot better, but we have to work with what we got) and stocks post a rebound.

Mr. President, please please PLEASE give us some details tomorrow!