Hollywood often is the gift that keeps on giving. Greg Newton tipped me off to Russell Crowe’s proposed bailout solution. But Crowe’s math was quite off but his reasoning from this interview in Wellington, NZ was fascinating. Wouldn’t this type of thinking fit-in nicely with what passes for logic from the US Congress? The highlights follow:
"Um, so, here's the thing: They're looking for 700 billion dollars, right?" the NZPA quoted the actor during the interview.
He said: "Which is a good chunk of change, but have you noticed whenever you go to a bank, or whenever you talk to a government department about what you need, they'll never actually give you all of what you need?”
"So, I don't think we should do that for a start. But I was thinking if they wanna stimulate the economy, get people spending, let people look after their ... mortgage.”
"I think you take the first 300 million Americans, if that's the population at this point in time, give everyone a million bucks."
According to the 'Crowe Plan', the actual expense would be a staggering 300 trillion dollars - a figure that would provide Americans with just 1 measly dollar each. (ANI)

Okay, that’s enough picking on Russell Crowe since I’ll admit to some embarrassing math errors over the years.

Today’s market decline is the result of investors confronting economic reality. After all, the past few days and weeks are littered with an accumulation of poor economic data and corporate earnings. The obsession with the bailout bill is becoming tiresome. As important as it seems whatever happens may be anticlimactic although I assume after today there will more not less pressure on House members. The bottom line is investors are finally focusing on the data.

Volume was normal and breadth…well, it was horrible.













Money remains tight and banks aren’t lending to one another as they hoard cash as evidenced by the steep TED Spread [the difference between LIBOR lending rates and US T-Bills].





















































































































As the last chart indicates virtually all equity market sectors around the world are oversold. Economic conditions and the outlook for earnings are poor. The notion that the bank bailout bill will cure all that ails markets is being disrespected as are the politicians responsible for foisting this upon us.

The electorate is pissed. Who can blame them? With elections coming, and despite your political leanings, you should send a message of real change. That means whoever is in should be voted out. So if you’re a democrat voting for your democratic congressperson vote the other way and if a republican do likewise. I don’t care if you vote Green, Socialist or Libertarian. Do the same for president. But in order to get term limits you’ll have to do it at the ballot box because they’ll never do it.

As for Russell Crowe? Who cares?

We won’t be posting tomorrow but Greg Newton and I will be podcasting instead. If you wish to listen you may do so Friday evening or Saturday morning from our homepage with no charge or registration requirement.

Have a pleasant weekend.

Disclaimer: Among other issues the ETF Digest maintains long or short positions in: SDS, QID, SMN, SIJ, SDP, XLU, IEF, TLT, GLD, EFA, EFU, EEM, EEV, and FXI.