Posted on 10/30/2008 8:19:32 AM PDT by TigerLikesRooster
October 30, 2008
As World Markets Rally, A Fog Of War Envelops Trading
AngrybearWhen the stock markets around the world raced down earlier this month, there was some sense to it. The credit and liquidity troubles were real. Corporate earnings became progressively troubled. Layoffs showed clear signs of accelerating. Housing values continued to fall and mortgage default rates got worse.
To put a point on it, there were ample reasons for the markets to become undone and for panic to reign.
Over the last two days, markets in Hong Kong and Japan are up almost 20%. In just two days.Only two.
The US markets rose close to 10% in a day earlier this week and have held most of those gains. No one would be shocked if the market goes higher over the next few weeks. The momentum is in that direction. Earnings season is almost over, at least for the companies that count. This means the headlines will not be taken up with corporations cutting forecasts for the fourth quarter and next year.
Looked at another way, the weight of bad news in the economy has not been lifted. If anything unemployment will be up for the next several months. The best analysts think bank earnings will get worse and that financial companies may have to raise more money. The federal government is looking at a plan to underwrite three million mortgages which means that there are at least three million mortgages that need to be salvaged, not on the basis of the value of the homes or ability of homeowners to pay, but because it will help the economy by bringing stability to the housing market.
(Excerpt) Read more at 247wallst.com ...
This guy must have never heard of bear rally.
On the other hand, this latest upswing would knock the wind out of Zero's sail, which I do not mind at all.
Ping!
This was a funny read: “the market is behaving unexpectedly, and I’m not smart enough to understand why.”
>On the other hand, this latest upswing would knock the wind out of Zero’s sail, which I do not mind at all.<
I do hope and pray that the voters are ignorant enough to think that the danger of recession has passed and they can vote for Juan McCain now.
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