[ an email from Kim, a SpikeTrade Member in Wisconsin ]

The aftermath of the British Petroleum oil spill has made me feel very sad and very ill for some days.

The effects are devastating to wildlife, sea life, fishermen, and general morale — given the lack of preparedness, apparent incompetence, and apparent lack of leadership in dealing with the crisis promptly and effectively. Frankly, I think the North-South Korean submarine trouble is being played up as a distraction to this massive environmental disaster.

But what I wanted to say as regards the stocks markets is that, if they get that thing capped tomorrow, there may be a substantial rally. If I had any short positions myself, I would at least temporarily close them prior to developments in capping the oil leak Wednesday or whenever it happens. You may make more money if they fail, and we might then have a super-crash with everything else going on: but the current co-operation between the U.S. and China is affecting some China related stocks in a mildly positive fashion, and if this dove-tails with a success in capping that oil spill, I would think it would be quite positive.

Just wanted to say, beware irrational exuberance when the oil leak is stopped!

All the other problems will still be there, but this situation now is just intolerable. I have to confess, when I saw on TV the administration having music day at the White House on Saturday, our President and his wife and the Vice-President watching “Stevie Wonder” and others perform — when nothing effective had yet been done to stop the oil spill — it did call to mind Nero fiddling while Rome burned, as the old myth went. I know they had the very best intentions and it was planned long ago and couldn’t be changed, but it just seemed inappropriate considering the grave situation… Well, we know I’m no politician!

Kim B