Investers are investing in the strongest banks.
Thank God for the Jewish holiday!
The whole thing was just the craziest scam. Our "government" will not get an academy award for this one.
“Jokers are on the news right now saying that the market is going up because investors think another bill will be passed! LOL! The markets are going up because they know a bill is irrelevant to the free market!”
I think you are right. Paulson panicked when he saw that WaMu and Wachovia could fail, saw te TED spread go bonkers, and thought investment banks would go under ... well, guess what, no bill, WaMU *and* Wachovia are *both* gone, Fortis is gone, investment banks changed their stripes and are deposit-bearing banks now ... we may have a few other dominos to fall, but basically Wall st is getting cleaned out. He wanted the $700 billion to save the institutions that are already gone.
We already took the bear market whack and the credit spreads are what they are. You can still borrow ... for a price. The market has alrady priced down to the scenario where this plays out without the bailout. Not the end of the world, but a lot of hurt to go through to fix the damage done.
At this point, I see the greatest threat to our prosperity to be the election of Barack Obama. Keep your eye on that prize.