Spencer had a sobering take on the rally:
The market bounced back today to almost where it was on Wednesday.
But if you look at how the various sectors did the market is not only discounting that the bailout will work, but that it will be inflationary because the market bet on energy and raw materials today, not financials.
Moreover, the market is betting that the bailout wlll cause commodity prices to rise but not consumer spending..
this is an interesting forecast.
The headline is also his.