Geoffrey Rogow Foresees An Ominous Future For The Stock Market

Geoffrey Rogow of Dow Jones Newswires spoke with us about how the recent upsurge in the stock market might affect our pocketbooks.

The Dow Jones gained 497 points yesterday--its largest earnings since November. This came one the same day President Obama presented a trillion dollar financial proposal.

Rogow saw this gain as a sign of the end of a rally: "We've already had a 16 to 18 percent gain in the Dow Jones industrial average..." However, he allows that employment is going to get worse before it gets better, at consumers' expense. Rogow explained, "As bad as fourth quarter earnings were this year, the first quarter will be worse."

With Obama's rescue plan, Rogow foresaw that pension funds can be invested directly into corporations like Pimco.

He explained that the money coming out of the Stock Market isn't reaping any money, and is in turn affecting factors like student loans and "other things that people need to pay on a day to day paycheck because they're not getting their paycheck."