Here is an argument I keep hearing.

Historically, this has been a poor strategy off which to trade.  Often times, the market bottoms well before the bulk of the job losses occur.  Let's look at the past six recessions.

First, the empirical evidence.

This is due primarily to the massive write-downs in the financial system.  It is staggering nonetheless.

You can listen to Terry Gross's interview with Frank Partnoy on NPR's program Fresh Air here.  It is well worth the listen.

From Bloomberg

Following up on yesterday's post, volume was 5.8 billion today.  And, unfortunately for the bulls, much of that came in during the last hour of the day when the market started selling off.  Volume at 2pm was barely pushing 3 billion.

Moves on light volume do not inspire confidence.

So sayeth the head of the World Semiconductor Council.

The head of the World Semiconductor Council warned yesterday that recent aggressive capacity cuts in the D-Ram memory chip sector were likely to result in a severe shortage by the end of the year that could disrupt shipments of computers and other electronics.

After rising 20% over 15 trading days - the fastest ascent since 1938 apparently - the market is taking a breather, with the S&P 500 falling 5.4% over the past two days.

The two-day decline has been on light volume.  NYSE Composite volume was 5.5 billion on Friday and 5.7 billion today, the 32nd and 27th lightest volume days over the past 34 trading sessions respectively, which marks the sell-off that began on February 10 and the subsequent rebound starting on March 6.

Otherwise they would be slashing their pay.  But it is oh so difficult when you get used to living high on the hog, all the while destroying the world economy.

Banks almost unanimously agree that their compensation packages contributed to the global financial crisis but still are struggling to correct some of the flaws in their pay structures, according to a survey of financial institutions due for publication Monday.

But you all knew that, didn't you?

I am of the opinion that no one from Wall  Street should even be allowed within the Beltway, let alone the corridors of power, given how badly they have messed everything up.