Saturday, November 22, 2008

Duh


Change alert.

The reason that stocks went up after the Geithner announcement is because Wall Street perceives that Geithner will be willing to expend public funds to prop up big business.

And I could be wrong on this one, but I believe we are now 3 for 3 in the white men-hairplugs tally.

2 comments:

George said...

My take on it is that it had nothing to do with the announcement on Geithner.

There had just been a bunch of options expirations, plus a whole bunch of pent-up demand for something, anything, to invest in since over 900,000,000 shares of CitiGroup had been traded (mostly SOLD) in Friday's session.

I think investors prayed that 7500 on the Dow WAS the bottom, and held their breath and pushed the "buy" button.

The Obama press were the ones who touted this as a "Geithner surge", not the elves, who, when it happened, were incredulous that it WAS happening.

Bill said...

I don’t know George. Three years ago I would have thought I was nuts. The combination of greed at the top and ignorance at the bottom has turned me into a cynic. People at the top want to turn us into Central America and they’re winning, for now. My latest endeavor has not changed my mind.