Re: DOW Up 416.66 : Financial Groups' Correction?

On Mar 11, 3:46 pm, stuff_st...@[EMAIL PROTECTED]
 wrote:
> On Tue, 11 Mar 2008 13:30:17 -0700 (PDT), perrie
>
> <perryneh...@[EMAIL PROTECTED]
> wrote:
> >We'll see if it continues tomorrow, won't we?
>
> http://biz.yahoo.com/ap/080311/wall_street.html
>
> Dow Jumps More Than 400 Points After Fed, Other Central Banks Move to
> Ease Credit Crisis
>
> NEW YORK (AP) -- Wall Street finally found a reason for a huge
rally>Tuesday, after the Federal Reserve said it plans to pump $200
billion
>
>  into the financial markets to help ease the strain from the credit
> crisis. The Dow Jones industrial average shot up more than 416 points,
> its biggest one-day point gain since July 24, 2002.
>
> The Fed's program is part of a worldwide effort to help struggling
> banks and mortgage providers. The Fed -- acting in concert with the
> European Central Bank, the Bank of Canada and the Swiss National Bank
> -- agreed to loan investment banks money in exchange for debt,
> including slumping mortgage-backed securities.
>
> The move is meant to essentially create a market for assets that
> investors have been too scared to buy. That freeze-up in demand had
> sent asset values plunging and caused huge losses for some of the
> world's biggest banks.
> .. .
>
> "It's not just a rate cut. I think it's a very creative way to do
> financing," Conroy said. "It shows the Fed is willing to do things
> that are a little out-of-the-box to shore up credit issues. I really
> think they went to the heart of the issue."
>
> **** - a $200 billion bailout?  Who's going to get the tab for this?
>
> And why is the fed saving the markets? It's charter is to manage
> employment and inflation.

 it still does not rectify the under laying problems in the worlds
economy, wages. as we have noticed, americans and most of the west is
tapped out. asia has little or no internal demand.
 is this another massive, expensive dead cat bounce? we will see. its
lots of money for a couple of days of gains that may eva****ate
quickly.
 but is it enough money to stem the tide of red ink wa****ng thru the
whole worlds economy right now? if you think it is, your are a small
thinker(not you stuff), if you think it is not, then you know
trillions of bad debt thats called liquidity is imploding because the
200 billion is chump change.