All that gloom and doom….pshaww….

Hey!! Have you seen Chip’s new racehorse!! It’s got the most gorgeous eyes!!

You keep using that phrase.
I do not think it means what you think it means.

Oh yeah, that’s right. P/E ratios generally decline to single digits during deep recessions.
My guess is that the institutional investors focus on earnings this week.

This may not come to pass necessarily, but this week I couldn’t help but remember that we had a happy-clappy rally just like this during the week leading up to Thanksgiving. All week long with a lot of traders out or sitting on the sidelines we had buying on light volume. On the Monday they came in and sold.

I was thinking this week that the mood in New York right now is actually amazingly complacent. People are thinking that sure 2008 was awful, they lost 50% of their money and they couldn’t sell their apartment if they tried, but they still have a job and the market always comes back, look it’s up 25% off the lows, and hey, Manhattan real estate never goes down.

So unemployment, foreclosure, what’s that? It is happening to some schmoes in California, Michigan and Ohio, so that doesn’t matter, right? We dodged the bullet, the big bonuses will come back and we can still have the place in the Hamptons and send the kids to Dalton as well as have the extra marble counter top installed in the maid’s kitchen. The credit card bills are a concern, but hey, next year’s bonus will take care of it, right?