Auto bailout not good enough for a vote

Plan to give U.S. automakers billions in government-backed loans is on life
support after Dems cancel today's vote


Well, at least there is some good news coming out of Washington these days. I will be watching the stock market to see how Wall St. reacts to this relevant piece of information, given how they reacted to that stupid bailout of the financial markets I suspect this will be treated as 'bad news'. As you know the market has broken down local support, this means that supply and demand has shifted to the point where Dow 8,000 is no longer attractive. Expect another leg down which could send the Dow down to 7,000.

Still, the auto bailout - err I mean - UAW bailout was such a painfully obvious decision, that I am reluctant to give Congress any credit on this.

Things to watch for.

1) Today's stock market

2) Obama's administration handling of the auto industry in the first 100 days. (I have a sneaking suspicion that the Big3 might try to hold out for 2 months knowing that an ally is coming).

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