Solarbird (solarbird) wrote,
Solarbird
solarbird

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short form

My guess - and it is a guess - is that a lot of people are buying stocks today because they figure a 10% correction is over, saltted with the psychology of a four-digit DJIA, and the German government approving a Euro rescue package. There was also massive intervention to support the Euro - particularly from Japan - so a lot of that pressure is off.

Also, the Senate's version of banking and finance reform is a sham. Senator Maria Cantwell (D-WA) was on the radio this morning having voted against it rattling off a list of failures that may as well have been taken from Karl Denninger, with the specific addition of talking about how it doesn't separate off investment banking again and needs to. She's hoping to fix it in reconciliation; good luck with that. Still, it helps explain why the financial sector stocks are leading this bounce.

A few notes: "Bankers confirm Wall Street's barbarianism." London bankers are worried about "Great Depression Mark II." Job claims jumped to 471,000, being pitched as a hike of 25,000, but it's actually worse; that's unrevised against revised, again, and last week's claims were revised up to 446,000, so it's really a little higher (+27K). The four-week moving average is now up to 453,500. Alphaville talks about the Eurozone as a giant CDO; that's worth reading.

eta: Ohhhh, no. There was a rumour flying about that Goldman Sachs had reached a settlement deal with the Dalek SEC. It was bogus, and the spike snapped off.
Tags: economics
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