Sunday, October 7, 2007

The Week Ahead

This week is a snoozer for financial data points. Almost nothing market moving until Friday, and then only some crappy inflation readings, and we know how good those are. Some fun might be had on Tuesday when the minutes of the September 18th FOMC meeting are released. All kinds of readings into whats released will be done, but it would have been fun to be at that meeting!
With no real major news, be aware that there will not be any confessions from banks, home builders, or mortgage companies this week as they will have no cover. I imagine the week will be an up week, as the market wants to go up, and indeed it will.
I wanted to say thanks to everyone that has stopped by so far, I appreciate the read. Feel free to use the comments section to suggest blog post ideas, or anything else for that matter.

For a change of pace for Sunday, I would direct you to a boxing match from 1990 that hold some parallels to the current Economic Disconnect. The bout was between Julio Cesar Chavez and Meldrick Taylor for the Super Welterweight title. Both fighters were at the highs of their careers and undefeated. The fight was a classic, and I watched it live (I'm a HUGE boxing fan). The disconnect form reality comes from the fact that this was to be Chavez' last fight for the HBO network, his contract was expiring. HBO had locked up Taylor however in a long term deal. During the wonderful fight, the commentators continually praise Taylor's efforts, and minimize any Chavez moments. I don't remember exactly, but the HBO had the fight scored 9 rounds to 2 for Taylor going into the fateful 12th round. I had the fight scored almost even with Taylor ahead by 1 point. The disconnect come from the fact that as the commentators were saying that Taylor was winning the fight easily, Taylor himself was a total mess. Both eyes were closed, his nose was bleeding, his lip was severely cut, and he had taken horrific body shots all night. After the fight it was found that Taylor had a broken orbital bone, bruised kidneys, had swallowed a pint of blood, and my have sustained brain damage. The fight effectively finished him as a top flight fighter. The take home point is that saying something is so, does not make it so. Chavez finally is too much to overcome, and the fight is stopped with 2 seconds to go. Will the stock market and the US economy, seen by most as winning the fight, likewise be knocked out soon?

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