Dow Live Report

Dow Live Report – The year has been tough on the markets but this week matters may have turned for the better. Or so one may think when looking at the DJIA graphs, and most global stock markets, for that matter. The week has been full of positive incentives and actions dedicated to stabilizing the global economy. The keen observer will note that all activities currently are focused on supporting, stabilizing and saving, which in itself is worrying.

Europe is once again the main actor on the global market stage. The move to vastly strengthen the EFSF (European Financial Stability Facility) and increase the EFSF and IMF bond, helped to ignite the latest market spike that pushed the Dow 422 points higher on Wednesday. Add to that the coordinated cheap dollar loan plan which is essentially a way of pushing the funding problem forward by offering extremely cheap loans without collateral. In short, a shot in the arm to artificially boost morale and provide some respite from the drift towards the edge. Good or bad? Will it be effective? Short term good, mid-long term.. obviously bad. Somewhere along the trip someone has to pay. Even printing new money comes with a severe cost down the line. In any case, necessary.

This is a true emergency package of vast proportions that should clear any doubts as to the severity of the current global economy health. This is a time when the machinery underlying current market levels is based on financial steroids and not on fundamental strengths. If you rev an engine too hard and too log if finally goes bust. Play the spikes for what they are – short-term reactions to emergency treatments and fueled by the investive machinery itself.

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