Do you not get the feeling that every time the Bush administration wants to sell an unpopular idea to the nation it uses a scare tactic to do it?
I have had that feeling quite often ever since that Sept. 11th.
Today was another such time.
( Read about it "Stocks Extend Plunge; Dow Falls 306" at http://biz.yahoo.com/ap/080117/wall_street.html)

Usually job report numbers ( or any other government statistic ) come out and they appear played with. When everyone gets used to them or forgets them then a reassesment or correction is introduced in the direction that they should have been in the first place.

I think today the opposite effect occured. Perhaps not that the numbers were swung in the opposite direction but that the numbers were probably stated truthfully for a change.
Why the change?

Because it is in the government's interest.
Tomorrow, or perhaps later in the month, the interest rates will have to be 'adjusted to help the economy'. I use the single quotes because in reality it is to help ( or if you like pospone bankruptcy ) bail out the undeserving financial institutions with public money.

The ordinary citizen is probably not conscious of that but there is a sufficient number of folks that would notice, cause a ruckus and perhaps even provoke some bad publicity for the administration in an election year. Stating the truth about job numbers produces an atmosphere where the Fed can do its dirty work and appear as a saviour by lowering interest rates even further, imagine that. A win win scenario. Poor Joe Public.
( Here is where I would normally say, I am glad I live in Canada, but my Mr. Harper is following a similar policy and dragging the Looney down for the sake of the manufacturing economy - at least that is what he says. )

Normally I would not bother with another one of these rants from the soap box.
But did you notice what happened to the markets in the US in the last two days and now I notice it has meandered to Japan.
Well this effect is percolating through every stock that I own and even the best ones.
It is stronger that the solid fundamentals of these stocks.
And you wonder why my ECU is stuck near the 2$ mark.

I received an e-mail today from one ECU holder who is frustrated with lack of news and lack of appreciation in share price, is considering bailing out. Consider yourself lucky, it could have been worse. And where would one go? Bonds or term deposits? Bullion may be best alternative.
Whew, Ed G.