So here I am watching the markets rise last month and all I can think is greed has entered the market again as all the boomers try to make back their lost 30-50%.

There’s no fundamentals causing the market upward swing, thus I have to side with many who believe there is another crash coming. I think we’re going to see a sawtooth pattern for awhile to come.

With the rise in markets also comes the rise in bonds and indirectly the rise in rates… at least the 5 year and longer term rates. Again not driven by anyting as neither the Fed or the Bank of Canada are even hinting at raising rates. Just simply responding to the rise in the markets.

OK, so if we follow this logic, then how do we explain that as the longer term fixed rates are rising, at the very same time we are seeing a thaw in the variable rates. What’s that famous texting expression… WTF?!? The sources of funds are rising long term, just not the source of funds for variable rate funds. Why are these funds exempt? Not a major shift like we saw last summer going from prime minus to prime plus in the space of a couple weeks.

Speaking with a broker in the office this week. I said rates are on their way up. His response? Great! That means we’ve finally hit bottom. Well, maybe for the summer. I still think we’re heading for another major decline in the market. Oil always seems to rise most rapidly just prior to a stock market crash.

I figured for sure when GM officially declared bankruptcy that this would send markets for a spin. Business as usual. Guess the market expected/predicted this well enough that it was a non-event.

Anyone catch those new GM commercials? “We’re not out of business…” I don’t know about the rest of you, but I’m going to find it hard to have any confidence in a company that has just now realized it’s time for a change. What has me spinning is the seemingly precise timing of these new ads. Certainly their PR department is right on the ball.
Locally, we’ve seen the announcement of dealerships closing. I’m still trying to make sense of this one. In a crisis situation, where the only hope you have of surviving is to sell MORE product, they are closing down dealerships. Huh? Again WTF?

Don’t they earn franchise fees from these folks? Aren’t all these places run based on 100% commission sales? Isn’t this like cutting off your nose despite your face?

Really, in recessionary times to sales managers walk in and tell their sales staff, “Well, we’re experiencing difficult times. I expect everyone to sell just a little less so we can make it through this rough spot.” …. Um, I would hope not. I would think it would be, “Things are tough, let’s go break some sales records. What can we do to be meaner, leaner and get more deals done? If we don’t sell, this company is toast.”

I’m obviously missing something in the bigger picture, but reducing the sales staff or outlets to sell just doesn’t seem like the smart move for a company trying to “renew” itself.