New York – Stocks rocketed higher Monday as investors cheered details of the government plan to mop up toxic assets from banks’ balance sheets.
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The Dow Jones Industrial Average was up nearly than 500 points, or 6.7 percent. The S&P 500 and Nasdaq were also up more than 6 percent.
The government is planning to loan private private firms money to buy up to $1 trillion of bad assets, then share in the profit or loss when they are sold at a later date. The plan is two-pronged: One part will focus on purchasing toxic securities, the other on purchasing bad loans.
While some say that the government’s proposal would actually make things worse for the economy, futures traders greeted anticipation of the announcement with enthusiasm.
Obama spent TRILLIONS buying back treasury notes and toxic assets of banks so that the market can rally on the back of banks that say they are doing better.
Stupid people. We the people are left with a hole bigger than obamas ego and a financial crises looming that will drown the US. Obama personifies the instant gratification generation.
Guys – if you are considering to invest a few thousand in the market. Now is the time.
This is very bad news. The market shows a very extreme case of schizophrenia.
Loans are just that. They need to be repayed with interest. While loans will prevent bankruptcies in the near future, they will not erase losses. The stock market rallied strongly in January, only to set deeper lows early this month. The troubles are not over. One shouldn’t chase after stocks while there is great enthusiasm.
what goes up must come down, goes up fast comes down very fast
america has become one huge casino. who need las vegas when we got wall street
BUY on rumor SELL on news. If you wanted to make make with this upswing, you needed to have bought on Friday.
it’s erie how many similarities there are between these last 8 months and the beginning of the great depression.
may hashem protect us
yolicheinu komimiyus liartzeinu
We shouldn’t get too excited about day-to-day rises and falls. What matters is what happens on a scale of years. Also, don’t get too too excited about the market — it’s only one measure of how well we’re doing, and it’s not even always a very good one. For example, the market did fantastically from 1970 to 2007, but during that same time, wages (adjusted for inflation) went down. So at best it tells you how the investor class is doing.