I figured this week was going to be a bad one for the market, unless you are a short seller. It would be nice if Ambac and MBIA could get their issues sorted out, because I think it would help remove quite a bit of the volatility and downside from the market. On the surface, it appears as though the economy is on the mend, because the ISM Services indicator was not as bad as predicted and the UIC (Unemployment Insurance Claims) were a little higher this time. That, to my understanding, is a large portion of the economy. UICs being low is important because it says that consumers have jobs. Tomorrow will be a big day with the unemployment rate being announced. I still think we are in a "soft" recession. The thing that is keeping us afloat and out of a "hard" recession is the global growth.
As the infamous Jim Cramer indicated not long ago, some of the banks have to fail and have some consolidation in the banking sector. It is on some of the business news now, so that appears to be in the works.
I'm still betting on the FOMC lowering the fed funds rate on the 18th of March, which could be a turn in the market.
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