By Charles Payne, CEO & Principal Analyst
The market is holding up rather well but it doesn’t change the fact that the healthcare bill is a step in the wrong direction from several points of view. Financially, I think that it’s going to be a disaster. The precedence established in Washington could mean a fight in the future. The market is happy that there is no public option, although it’s not completely dead. The President didn’t get his commission to control health insurance companies’ premiums. So the market is holding up, but this bill presents problems for the economy. It will be a job killer and another massive unfunded liability.
That said, the market has rallied in the face of trillions of dollars in unfunded liabilities and saber rattling against businesses. In some ways, we are seeing a sigh of relief and acknowledgement that all the bad stuff will accumulate over time. I also think that the action in the market thus far underscores the fact that a ton of money is on the sidelines and has been ready to pounce (not all $3.0 trillion) and did on this morning’s dip. At some point there will be real good news for the market to rally on; for now I think that there is a game of attrition as buyers look/hope for dips and maybe moved too soon today.
Charles Payne is the CEO and Principal Analyst of Wall Street Strategies . This post was republished from his company’s column, WStreet Market Commentary.
