[quote=fat_lazy_union_worker]I don’t know. I’m sort finding this chaos entertaining. I mean, i guess it’s the gambling side of me, but it’s kinda fun betting on bailouts and see which way it turns out, more entertaining that betting on horses.
Bring on the naked short sale restrictions and 50 basis point cut, U.S. Fed Gov. Since we’re in such a bailout mood. Bail me out 🙂
Note: this is either going to end well for me or go really badly, lol….Weeeeeeeeeeeeeeee….
My logic…Do everything that my engineering discipline has taught me about being completely rationale and based on facts and data…Then completely throw that out the window and do the complete opposite of what I normally would do as a sane person.
[/quote]
Bump…
Holy sh!t. Looks like I’m not too far off. Government is going to try to bailout the equities market too. I hope none of you recently shorted financial stocks…This is frickin unbelievable.
So much for “free markets”.
Recap of what gov is planning to do.
1)Ban short selling on 800 financial stocks
2)Create an entity for banks to offload bad debt to
3)Guarentee money market funds
Stocks Set for Giant Rally After Word of Government Rescue Plan, Ban on Short-selling of Financials- AP
Stocks head for big rally after US government indicates it is working on a bank rescue plan
NEW YORK (AP) — Wall Street headed for a huge rally Friday after the U.S. government said it is creating a plan to rescue the nation’s troubled banks from their souring debts.
If such a plan is put in place to help the banking industry, it could help alleviate the uncertainty that has been sending the markets into tumult over the past week. Lending has grinded to a virtual standstill in the wake of the bankruptcy of Lehman Brothers Holdings Inc.
Treasury Secretary Henry Paulson said late Thursday the rescue plan will need congressional approval. He and Federal Reserve Chairman Ben Bernanke briefed lawmakers on the options they are considering.
In another development that could send stocks soaring, the Securities and Exchange Commission announced early Friday it is temporarily banning the short-selling of nearly 800 financial stocks. Short-selling is the common practice of betting against company stocks by borrowing its shares, selling them, and pocketing the difference when they fall.
Ahead of the market’s open Friday, Dow Jones industrial futures rose 306, or 2.79 percent, to 11,291. Standard & Poor’s 500 index futures surged 44.60, or 3.71 percent, to 1,247.80. Nasdaq 100 index futures rose 42.25, or 2.47 percent, to 1,750.75.
Overseas stock markets soared.
Japan’s Nikkei stock average jumped 3.8 percent, and Hong Kong’s Hang Seng index surged 9.61 percent. In Europe, Britain’s FTSE 100 was up 7.50 percent, Germany’s DAX index was up 4.42 percent, and France’s CAC-40 was up 6.79 percent.
On Thursday, the Fed and other major central banks around the world joined forces to inject as much as $180 billion into global money markets in an attempt to keep the credit crisis from worsening. But with worries swirling about the financial health of such major companies as as thrift bank Washington Mutual Inc. and investment bank Morgan Stanley, the cash infusion was not enough to alleviate the tension on Wall Street.
An afternoon report, however, that the government was in the midst of crafting a plan to assume banks’ bad debt led to a late-day surge in stocks. The Dow rose 410.03, or 3.86 percent, to 11,019.69, in the biggest percentage point gain since October 2002. The index is still down about 400 points for the week.
Wall Street’s whipsaw week saw a massive loss Monday, a rebound on Tuesday, another drop Wednesday, and the rally on Thursday.
In early trading Friday, Treasury prices fell.
The yield on the 3-month Treasury bill — a safe investment to which investors have rushed — rose to 0.25 from 0.07 percent late Wednesday. Yields move opposite price.
The yield on the benchmark 10-year Treasury note rose to 3.63 percent from 3.53 percent late Wednesday.
The dollar rose against most other major currencies. Gold prices fell.
Light, sweet crude for October delivery rose $2.61 to $100.49 a barrel in premarket electronic trading on the New York Mercantile Exchange.
