Enjoy a video unrelated to the title. Or not. Watch at your leisure.
Damn right it’s not a comeback, It’s the well laid plans of a President and his staff who closely watch the Markets. At 3:00pm, the DJIA was down around 245 points, about 3%, and the S&P and NASDAQ were down about as much, a little less percentage-wise, but not much less. Then a story came out, from somewhere, that the White House will help struggling mortgage borrowers. The market got wind of it though. The market shot up from that point, and ended being down only 6.77 points. Now there was also a story about Coca Cola doing better than expected that helped, but in the face of doubts about the stimulus and a jump in the jobless rate, there was little chance that the Coke doing better than expected would have made up 238 points on a day that was a disappointment up until that point.
The S&P ended Up, as did the NASDAQ. Now the question remains, where did that little “mortgage borrowers” story come from? This is an updated version of that story that started the talk, from reuters, which got it’s information about it from Timothy Geithner’s testimony in front of the Senate Budget committee. Now I know he was supposed to meet with Max Baucas, Peter Orszag and Larry Summers, and is flying tonight to rome for a meeting of the G7, but I wasn’t aware of a senate budget committe meeting today. Maybe they meant tuesday’s meeting….Hmmm…
Hmmmm is right…. gotta think about this one for a bit, but I tell ya I am not going to look a gift horse in the mouth, any run in the market like this after a day that saw losses mount like they did is a good run indeed, and I won’t complain about it. But I tell you I hope there is really something to this plan, there are a LOT of Americans in a lot of distresss that could really use the help.
Enough of that. Futures markets are down slightly right now. More market stuff later. Guess that thing Rep. Paul Kanjorski put out there on sunday has me looking a little more closely than usual at this stuff.
That’s about it from here for now. I might toss a second blog out tonight, if work is slow. A second Viddy, a few quotes, and I am done.
Doctor Doom, NYU Economics Professor Nouriel Roubini, speaking on Monday to Bloomberg News.
That’s it for me. Later.
Today’s Nuggets, From Nouriel Roubini, Via Wikiquote: It’s not as if there’s infinite wealth. There are thousands of new luxury units coming on the market, and the question is, who will buy them? If people start losing jobs, who can afford to pay 2, 3, 4, 5 million dollars? Do you know 10,000 new investment bankers on Wall Street?
Reckless people have deluded themselves that this was a subprime crisis. But we have problems with credit-card debt, student-loan debt, auto loans, commercial real estate loans, home-equity loans, corporate debt and loans that financed leveraged buyouts… We have a subprime financial system, not a subprime mortgage market.