While they were most likely short term oversold, the 'rally' was all artifice, and had the feel of the kind of forced cheeriness in the big household during times of plague.

And so the half-hearted rally faded into the close.

The economic news this morning was rather poor. And yet there was happy talk being given out by the creatures of the financial sector, both in the States and the UK.

There will be no sustainable rally based on fundamentals, and no general return to prosperity and growth, until the system is reformed.

As Simon Johnson noted a few years ago, there has been a financial coup d'etat. We talk about these things like they are abstractions, almost stories, things that are happening to someone else.

But it is real, and it is affecting your lives, and the real economy, every day.

By Jesse

http://jessescrossroadscafe.blogspot.com

Welcome to Jesse's Café Américain - These are personal observations about the economy and the markets. In providing information, we hope this allows you to make your own decisions in an informed manner, even if it is from learning by our mistakes, which are many.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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