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Where were you JYL when I called a bottom on the S&P of 870 recently and needed your support?

The recovery we are seeing in the DOW S&P and NASDQ has nothing to do with a stimulus or recovery of the economy. It is merely regaining ground lost during a panic. Economic fundlementals will kick in to moderate the Stock markets rise to current conditions. One has to see that the current economic downturn was caused by the stoppping of the economies beating heart...cash flow or loss of liquidity. This stoppage has caused the economy to go into a deeper decline then would be otherwise suspected.

The recovery in the economy has taken place naturally as very little of the Stimlus Bill money has hit the system. When the money hits one is going to see an unsustainable sugar rush inthe economy when the money wears off the economy will decline back to its fundlemental or underlying economic base.

The modifer on the economy going forward are political ones. With a HC and Trade and Cap it will force business to have one more parameter to figure out to keep its costs low and maintain profitability. This will put a drag on the economy and cause unemployment to remain higher then necessary. If the current proposals are enacted unemployment in the USA will remain solidily above 10%. The German model of unemployment rates are to be expected in the USA, as that is the economic model the current administration in DC wants to emulate.

So one might see an anemic economy going in the future after the stimulus sugar rush wears off. It will be characterized by high unemployment rates, high inflation rates, decling dollar in other words stag flation would be the order of the day. The end results Americans are going to be and feel poorer in the decades to come.

BTW higher taxes are implied with the HC and C&T bills.