Decent Returns of August

(Via Capital Spectator)

Contributions to the Economic Recovery

1) TARP bailout funds stanched the precipitous hemorrhaging of bank capital
2) The Fed's policy of easy money (i.e. liquidity) and the purchasing of mortgage-backed securities
3) Federal governments $787 billion stimulus program

Financial stocks have been some of the biggest winners of Wall Street’s recent rally, but analysts have warned that the gains may have outpaced reality. Banks, they say, still face big losses as mortgage delinquencies rise and credit-card holders default on their loans.

(Via NY Times)

The problem with all this, especially the stock market, is that it seems to have recovered too quickly. Moreover, Sept/Oct are traditionally down months.