The Markets Will Work...If They Let Them
As I write this post Sunday night, the S&P futures are down 15 points. Tomorrow morning the US House of Representatives will vote on the $700 billion bailout bill. It's clear from the futures indicator that the vote is very much in doubt right now. My sources are saying that they are about 20 votes short right now to pass this thing. Let's hope so. The House is the only hope of stopping this bill. If they do not pass it, I believe the stock markets of the world will almost certainly start selling off...as they should. It's clear that Mr Market needs to go lower to find a reasonable equilibrium. What's not clear yet to me is how low it will go. My prediction is 800 on the S&P and 7500 on the Dow.