The hope of a real recovery in the economy that we spoke of in our previous post has been lost in the market activity since. A real economy and market up swing would take a solid base. That solid base would have two basic ingredients, value buys and meaningful infrastructure programs that would incorporate tax incentives.
The problem is however, Wall Street continues to rule the market (they were the one saved over the past two years) and they buy to create market plays not market investment. When main street finally comes into play and the market reaches a value buy area, then we can all be buyers. In the meantime Washington, both the Administration and Congress is either afraid to bite the bullet or have their heads buried in deficit reduction. Yesterday’s Obama $ 50 billion dollar infrastructure program announcement was another example of a little bite without comprehensive commitment.