Dow Drops 143 Despite Spanish Bailout


Although it would have been nice for the market to be up 143 points today, I do take some comfort in the fact that there is some sanity in the world.  First Facebook now the Spanish bailout.  As I wrote earlier today, the Spanish bailout is a joke and will ultimately not help her stave off her demise.  Fundamental changes need to be made in order to reverse her fortunes.  The markets, while initially up due to the “good news”, soon drew the same logical conclusion that things are not going to be ok.  Spain’s economy is weak and will suck up that money like a 1977 Lincoln Town car sucked up gas.  The conditions for the bailout needed to be even more detailed and stringent.  Money should have been made available in increments, providing Spain abided by even more stringent conditions.  But in the end, at least the US markets were under no delusion.  Sometimes that’s a very important realization.  As Major Garrett said this morning at the Magazine Publishing conference I am attending “the most difficult part for the US is we really have no control or input in how this turns out”  And like it or not, our economy will be negatively affected if the downturn continues.  Hence, the 143 point drop in the Dow.

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