Yahoo headline says this:
Stocks Soar as Oil Drops Again- AP
Wall Street has rebounded smartly, sending the Dow Jones industrials up 267 points after another drop in oil prices and a rise in consumer confidence reassured an anxious market.
Yet headlines underneath say this:
S&P: Home Prices Drop by Record 15.8 Percent in May- AP
Merrill to Sell Troubled Assets, Raise Capital- AP
Trade Talks Collapse as US Feuds With China, India- AP
Electronic Arts Posts Smaller Loss, Misses Targets-
Mervyns Files for Chapter 11 Bankruptcy- Reuters
Bennigan's, Steak & Ale Files for Bankruptcy
Starbucks to cut 1,000 non-store jobs by July 29
Chiquita 2Q profit expected to rise, weak 3Q view
On and on and on.
Wall Street is playing main street for fools right now. Easy to do when the money that is keeping the market up is provided by the FED.
When i get the exact number later that the FED gave the investment banks today, I will post it.
And by the way, on the days that the market goes down, the FED does not "hand over" money to the investment banks. Interesting isnt it?
Yesterday's Headline was:
Stocks Soar as Oil Drops Again- AP
Wall Street has rebounded smartly, sending the Dow Jones industrials up 267 points after another drop in oil prices.
What should it be today?
Stocks Soar as Oil Gains
Wall Street has rebounded smartly, sending the Dow Jones industrials up 200+ points after a 5 dollar gain in oil prices.
May Paulson and this market go to hell.
Markets recover long before the numbers support it. We have gone from a market that is going straight down to one that is bouncing up and down. Enjoy the volatility and become a trader for a few months. You can make money both ways.
1. Give the Treasury Department the power to extend Fannie Mae and Freddie Mac an unspecified line of credit and to buy their stock, if necessary, to prop up the mortgage companies. Yes... let's give Michael Jackson a couple of more kids to babysit! OK, that was harsh.
2. Allow qualified homeowners facing foreclosure to apply for lower fixed-rate, 30-year mortgages backed by loan guarantees from the Federal Housing Administration. The original lenders would have to agree to take a loss on their loans. THIS DOES NOTHING FOR ANYBODY. Most of these people have no equity and are sitting in a depreciating asset. This continues to be nothing more than rent with debt!
3. Create an independent regulator to oversee Fannie Mae and Freddie Mac. The regulator could establish minimum capital requirements for the two companies and limits on their portfolios. It would also have approval power over the pay packages of Fannie Mae and Freddie Mac executives. Oh joy... another regulator who will do nothing more than take a darvocet, a swig of whiskey and do nothing until the problems are already out of hand.
4. Provide $3.9 billion in grants to communities with the highest foreclosure rates to buy foreclosed and abandoned properties. And then what do the communities do with those depreciating properties?
5. Give about $15 billion in housing tax breaks, including a credit of up to $7,500 for first-time homebuyers who bought homes between April 9, 2008, and July 1, 2009. Why do these people deserve this?
6. Put a cap of $625,500 on the loans Fannie Mae and Freddie Mac can buy in certain high-priced areas, and a cap in other areas of up to 15 percent above the median home price. Terrific!
7. Count any federal infusion for the mortgage giants under the debt limit, essentially capping how much the government could spend to stabilize the companies without further approval from Congress. As of Tuesday, the national debt that counts toward the limit stood at about $9.5 trillion, roughly $360 billion below the statutory ceiling. "Capping how much the government can spend? Who they trying to kid?
institutions have been selling every rally. only quants, and short covering driving the casino. retail may be getting sucked in a bit but i doubt it makes a difference. 401k money unfortunately gets plowed in as well. retail is buy and hold and will hold all the way to s+p 650