In the past three trading days, U.S. markets recovered everything they lost last week. In the wake of S&P’s disastrous and ludicrous downgrade, the major indexes lost about 8 percent; since then they’ve gained that entire amount back and then some.
The rapid moves down last week led to a wave of analysis, portending a market-predicted double-dip recession, a waning of corporate profits, a worsening of funding crises in Italy, Greece, Portugal, and the entire European Union, and perhaps a collapse of fiat currencies ranging from the euro to the dollar. The moves the past three days, therefore, should have occasioned a wave of analysis heralding the stability of the U.S. economy, the health of the EU, the resurgence of Japan post-tsunami, the continued strength of China, and the ongoing commodity and industrial boom throughout the world formerly known as emerging.
