We have seen an unprecedented 4-day rally in the stock market. This is rather astounding given the parade of bad news. New home sales hit half century lows. Consumer spending has fallen to lows not seen since 2001. Unemployment claims are running at multi-decade lows.

We also just bailed out Citigroup and have committed over $8 trillion to holding up the financial system. The Dow Jones Industrial Average is loving it. Over these past 4 days the Dow has rallied a stunning 15.5%:

This is the biggest 4 day rally since August of 1932 when the Dow had a 25% 4 day streak:

Hmmm. Unemployment during 1932 was 24%. There really wasn’t any good news coming out then and there isn’t any today unless you consider massive bailouts good. If you think this kind of market volatility is good, I suggest you read this article.

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