I recently saw a funny movie called the Pineapple Express. In one scene in the movie, the guys trip on a twig, startle themselves, get scared, run into a tree and fall down a hill. These guys are of courses stoned out of their minds.
This reminds me a lot of financial markets. Oh my God, unemployment claims are up. Sell, sell. Oh no, now the stock market is down. The economy is going to hell. Sell, Sell. GDP growth isn't falling as fast as it was. Buy, buy. Oh no inflation could be a problem. Sell.
Here's the problem. Theses guys aren't stoned. Sure, a lot of them create the roiling market in order to profit from the changes one way or another. But them and the rest of those short term thinker having been killing us.
Economists have been predicting since last Fall that the economy will hit bottom in June and then pick up slowly. Nothing has changed. However, the concern is now business and consumer confidence. What is creating the jitteriness? Maybe these guys should get stoned. It might actually calm them down.