Like the man himself, the Santa Clause rally everyone’s been talking about looks to have been an illusion. The major markets are now down, all around 2.5% or more. The Indian Bernie Madoff obviously didn’t help on a day when a number of companies came out with big warnings.
A big loser: Energy. After rallying for the past couple weeks, oil is back to its old self, tanking. Crude, which had kissed $50 yesterday is back down to $44, taking everyone with it.
Not helping: News that Obama will deliver (yet another) big speech on the economy tomorrow, where he’ll press his case for the bailout. Maybe because no matter what he says, all people will hear is “trillions in deficits as far as the eye can see”.