Signs of Life?

On Wednesday, I wrote of caution with regard to Tuesday's stock market rally and CitiGroup's indication that they saw themselves as being profitable in January and February. I said that CitiGroup's profitability isn't necessarily transferable to the rest of the industry. Well, apparently others in the banking industry are seeing similar benefits from having received government bailout money last fall. On Wednesday, JP Morgan/Chase said that they, too, were seeing a turnaround; not just for them but, the whole banking industry (See Full Story). Then, today, Bank Of America seemed to echo what Citi and Chase were saying (See Full Story).

Armed with all the banking information and today's fact that Retail Sales were only down slightly last month (See Full Story) the stock market has been able to muster a 3-day rally.

This rally may be short lived or it could actually be the start of a recovery. I just don't know. I guess it will depend on what news we'll see in the future.

One thing, though, it shows that the rush to get the Stimulus Package passed may have been premature. The limited signs of economic life that we are now seeing have nothing to do with the Stimulus Bill. Actually, the cash outlays for the package are still just now starting to get off the ground. And, today, Obama, himself, admitted that things might not be as bad a previously thought (See Full Story).

I think this just proves that Obama was using the situation to push a social agenda through Congress. His thoughtless spending of a near trillion dollars may not have been needed. Leastwise, on the emergency basis that he kept claiming throughout all of January and February. Most recessions self-heal themselves in 16 to 20 months and we are right at about that point now. I think this further proves that maybe Nancy Pelosi' drive to have a second stimulus before this one has even had a chance to work is totally unwarranted.

It appears, once again, the kids have the keys to our car!