Markets are essentially even although decliners lead advancers 3-1. The S&P 500 FINANCIALS INDEX slipped under 105, another new low. The Alerian MLP Index is down 2 to 196 & other indices I follow are weak. However, the VIX, rose over 1, taking it above 50 (57 is its high this year). Oil is muddling along, near break even.
Obama is bringing out a plan to help deal with the growing number of foreclosures. But markets are not greeting it with enthusiasm. Housing continues in the doldrums as housing starts last month plunged to the lowest level on record, under a ½M annual rate.
•Obama Unveils $75 Billion Housing Program to Stem Record U.S. Foreclosures
•U.S. Housing Starts Fall to Lowest Level Ever on Credit Freeze, Sales Drop
In this state of gloom, autos are not far behind housing with their problems. GM needs even more money, not to mention Chrysler. Dems are running Congress, autos will not be allowed to fail this time. But the end of next month could bring the end of gov aid. Saab in Sweden is barely alive in the GM mess, they may not survive. Auto problems are global. Toyota & Nissan, etc. are all struggling to get by on lower sales.
•GM Seeks Up to $16.6 Billion in New U.S. Aid, Plans 47,000 More Job Cuts
Saab Fans Brace for Worst as GM Threatens Disposal
In these chaotic times, a modest market rise is expected after a steep decline. Today is not giving that scenario. Markets are flying on a wing & a prayer.
I have been having posting problems with Blogger, hope to get them squared away soon.
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