Don't misread it.
What you saw the last two days was not "faith & trust"
It was "greed & lust"
The fundamentals of the market should have never shown what happened the last two days. It's simply speculators hoping to make a quick buck off of government guarantees. Pretty sweet deal - as long as the U.S. dollar actually means something. When it ceases to - then watch out below...
No. Not "simply".
Along with speculators (which there always are and always will be...this is still America, isn't it?) there were many who like the plan and see it as the only answer other than a severe downturn. Is anyone else proposing anything to avoid a downturn? There's nothing else out there. Including here on Free Republic.
Many of those buyers you saw the last couple days now have hope that the plan might be the instrument to help the economy get back on its feet.
I agree. I was baffled by the ramp up in stocks on this news. Anybody with half a brain should have been scared enough by the revelation of the crisis in the markets and the uncertainty over any fix to sell equities and find something safe to invest in. No, I don’t mean sell 100% of equities, but people were aggressively adding to positions on bad news. I would have expected them to reduce positions in equities.
Good thing I am used to seeing a lot of idiocy in the markets, not only from small investors but among the “experts” who you would think would know better.