Next weeks marks the anniversary of the turning point in the US economy with collapse of Lehman Brothers. And it's a big week ahead this week. In fact, this could be the make or break week for US stocks with a whole series of events scheduled for the next few days.
CNN reports that on Monday, one day before the anniversary of the Lehman bankruptcy, President Obama will talk about the steps his administration has taken to stem the crisis. But on Tuesday, that will be followed up by the latest data on retail sales on Tuesday. Then on Wednesday, watch out for details of how inflation is tracking followed by data on the sick US housing market on Thursday. Indeed, Thursday will be a double whammy with weekly jobless claims numbers from the Labor Department are also due that day. And on Friday, the US government releases its state by state employment reports.
The problem is that the seeds of another collapse might have already been planted. You can bet that major banks will keep making bets that are now backed by taxpayer guarantees. And that means they will return to the practices that led them to underwrite trillions of dollars in bad loans that created the crisis in the first place.
Next week's figures might give us some indication of what's ahead.
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