Thursday, July 15, 2010

Despite good news, July's stock rally runs into resistance. - Barrons.com

ULTIMATE REALITY: Despite good news, July's stock rally runs into resistance. - Barrons.com: "- Sent using Google Toolbar"

Somehow, the market and the economy keeps reminding me of ever higher prices for houses a few years back.

As the gap between incomes and prices kept expanding, so seems the belief that with more and more of the economic wherewithal going to the government (ad infinitum, but likely less), the markets (and the government) seem to believe we can keep the same old jobs and business model going.

Well, there's less for business and a bigger and bigger drag from government (and the entitled). You can fool the market some of the time; but, as with housing, can you confound reality forever?

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