Recession – Tickets Anyone?

Patrick Lalande on WordPress

Headlines don’t lie.   I just know what I see. 

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In Interest rates drop – Recession dead ahead I wrote about the short to intermediate term of the stock market and the economy.  I wrote about the stock market and the economy and how perceptions might make us, the investors and consumers, act.  Below is a small excerpt: 

“…Suddenly, the Feds cut interest rates.  By casual observance, everything calms down.  The wind stops its howling.  The waves smooth off.  The silence gets loud!  We are saved!  We want to start making reservations for the return trip (buy stocks) while the price of the room (stock price) is low…”

In Recession dead ahead – FULL REVERSE ENGINES! I wrote;

“…what is happening today, 1-24-08, I’d say that the captain just realized that we were still heading towards the rocks and ordered “FULL-REVERSE ENGINES!”… 

 referring to the panic felt by our economic leadership and the desire for an economic stimulus package.

If you follow the stock market, over the last 2 days, you have seen the calm of the economic passengers on my analogous ship, and the sudden impulse to buy their return-trip tickets.

And today, you have seen passengers trying to sell those same return-trip tickets as  doubt that the ship can avoid the rocks continues to grow.  

I still think the rocks are going to win.  If we get the stimulus package as desired, that would just be another ticket window opened to buy trip insurance for this current cruise. 

I’d buy the insurance but I’d still wait (months as opposed to days or weeks) to buy a return-trip ticket.

Patrick

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