Diamonds and Dogs
Four more banks were shuttered by the FDIC over the weekend as the body count for failed banks has now hit 30 this year so far. Strategists are expecting the rate of failure to climb and we are currently pacing ahead of 2009. Much of the economic news though has been better than expected and stocks are definitely in a bullish phase. Tomorrow we will hear from the Fed to see if there will be any changes in the interest rate environment and our guess is that the language will be the same. So there you have it, the crisis has been averted, the economy is beginning to grow at about 4%, while simultaneously the FED is in panic mode, keeping rates at zero and bank failures ramp up. For the short term, you may want to bet on the stock market, because it is telling us that April numbers are going to be good and the headline risk is noise for now.
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