Posted on 11/21/2008 1:52:42 PM PST by 2ndDivisionVet
NEW YORK — Wall Street got a boost of confidence late Friday following a report that President-elect Barack Obama plans to name New York Federal Reserve President Timothy Geithner as Treasury secretary.
Stocks surged, with the Dow Jones industrial average jumping 325 points.
It wasn't immediately clear whether the market's advance following the report by NBC News was because it was in favor of Geithner as the Treasury nominee, or because investors are looking to pin down as many unknowns as possible about the new administration. In addition, some on Wall Street have grown frustrated with outgoing Treasury Secretary Henry Paulson over his handling of the government's effort to rescue the banking system.
The advance in stocks also came as the FDIC said it would guarantee up to $1.4 trillion in U.S. banks' debt for more than three years as part of the government's financial rescue plan. The directors of the Federal Deposit Insurance Corp. voted Friday to approve the plan, which is meant to break the crippling logjam in bank-to-bank lending.
Ahead of the report on Geithner, stocks had fluctuated Friday as Wall Street took a break from the heavy selling of recent days. Energy, utility and technology stocks showed some advances, but bank stocks declined sharply.
Stocks struggled to take a direction in early trading, then moved cautiously higher midday, but pulled back later in the afternoon in another erratic session that has become the norm on Wall Street. Stocks didn't move sharply higher until after the report that Obama would tap Geithner.
Some advancement had been expected during the session following two days of steep declines.
(Excerpt) Read more at annistonstar.com ...
Co-architect of the JP Morgan takeover of Bear Stearns. Part of the cartel that appointed Obama their President and Chief Errand Boy. Business as usual.
Paulson = Worst. Treasury. Secretary. Ever.
http://www.freerepublic.com/focus/f-news/2136102/posts
All the Wrong Policies: Paulson Gets ‘F-Minus’ from Former Regulator
I remember after after O’s first press conference the business channels saying what? he didn’t say or do anything?
Obama’s been, as Rush said, doing absolutely nothing. He’s been fiddling while Rome is burning. I guess he realized that even though he’s elected now, he can’t say or do whatever he wants without some consequences.
He’s going to have to lay low a little longer.
Part of those mysterious “powers that be” that have a LOT more control over politics and markets than anyone in public position will admit too...
Personally, I don’t like the direction things are going. Just pushing me to cling even more to my God, my Bible, and my Guns.
Tomorrow is options expiration, so we saw a whole lot of investors excercise their November 'puts' and make a ton of money. That isn't what I would call "Good news" for the market.
I write an economic update email for about 75 families and told them last night to expect a 500 point run-up in the Dow. How did I know that? Options expiration...
Look for the market to continue dropping.
You are absolutely right, too bad it is far too complex for the media to report on, so they choose a simple answer.
How come when the market goes down, it certainly can't be because of Obama.
But, when the market goes up, it's because of Obama.
Has AP come up with an explanation for the Dow’s plunge the past three weeks, beginning after election day?
Apparently this appointee is the one and only so far who knows what he is doing, if we go by reputation.
That little weasel obama couldn’t make change for a quarter at a kid’s lemonade stand.
I can’t believe that the majority of idiots voted in this incompetent clown into the most powerful chair in the world.
Conservative states need to start printing their own money to divorce themselves from this crew of Titanic fiddle players in Washington.
It is the law of Democrat vs. Republican. You see, the rule states that all negative news MUST be blamed directly on a Republican, particularly if they are the President.
The inverse is also true - that all positive news MUST be directly credited to Democtrats.
It is the law and you must respect the law...
(/sarcasm)
What? Only Someone from Goldman Sachs is allowed to be Treasury Secretary?
the case for adjusting monetary policy in response to negative asset price shocks is commonly considered more compelling than in the alternative context
Not true, today's rally was driven by expectations of inflation.
Next Hedgefund deadline is November 30.
Or, as some wit from CNBC put it, Government Sachs.
Meet the new boss, same as the old boss. Sigh.
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