Dow Closes Up 936
[Guest post by DRJ]
Today’s good news:
“The surge came as executives from leading banks were summoned by the Bush administration to Washington to work out a plan to get loans, the lifeblood of the economy, moving again. And it followed signals that European governments would put nearly $2 trillion on the line to protect their own banks.
The Dow gained more than 11 percent, its biggest one-day rally since 1933, and by points it shattered the previous record for a one-day gain of 499, during during the waning days of the technology boom in 2000.”
I don’t like extreme volatility – up or down – but it’s better than 936 down.
— DRJ
It’s better than 936 down but it is a bear market rally and those are notorious for speed and distance in a day. Then the bear comes back. This is a world-wide bear market and will not be over for a year, at best. The last one was 1973.
Mike K (f89cb3) — 10/13/2008 @ 2:51 pmThis once again demonstrates the incompetence of the Bush/Cheney Economic leadership –
Another Drew (1d7115) — 10/13/2008 @ 3:10 pmWhy didn’t they know this was going to happen?
Will we now see a 1500-point drop Tuesday?
Mike K,
I agree there will still be turmoil in the markets but I think the banking issues are starting to resolve. That should help, but the political issues are still very much up in the air.
DRJ (c953ab) — 10/13/2008 @ 3:21 pmPerhaps a dead cat bounce?
Dmac (cc81d9) — 10/13/2008 @ 3:23 pmThat was a very springy dead cat.
Another Drew (1d7115) — 10/13/2008 @ 3:25 pmHeh- I question the whipsaw markets. I’d like to know just how well the various exchange market makers and specialists are doing. They know who has orders to buy and sell and in what amounts plus they easily can naked short all day long.
It is a battle of greed vs. fear and I think the little guy gets screwed every time. Hillary enablers might believe her business acumen was the reason for that killing in the market so many years. Her order didn’t get preferential treatment and assigned winning trades? Rezko gave Obama real estate breaks because they were merely good buds? No quid quo pros involved in either case?
Surely logical people can see that there has to be a piper to pay for the excesses wrought in the market sooner or later?
If we have a run of money pushing the market up for an extended period doesn’t that hurt Obama’s election chances?
madmax333 (0c6cfc) — 10/13/2008 @ 3:37 pmWill the one that cried “I blame Bu$Hitler/McCain/Rethuglikkkans” when the market fell give the same people credit?
JD (f7900a) — 10/13/2008 @ 3:52 pmHeh. Indeed.
PC (b4b303) — 10/13/2008 @ 4:24 pmUPDATE FROM NYSE:
A glitch in our computer system led to the erroneous statement that the DJIA closed up 936. The actual close was + 6-1/4. We apologize for any inconvenience.
Kevin (5ac156) — 10/13/2008 @ 5:31 pmDRJ,
Please do not approve any more comments from jharp. He has earned a permanent ban.
Patterico (7944d6) — 10/13/2008 @ 5:49 pmIt was only a matter of time, which finally arrived for those who serve, and wait.
Another Drew (1d7115) — 10/13/2008 @ 5:55 pmI will not approve any jharp comments.
DRJ (c953ab) — 10/13/2008 @ 5:56 pmWhat possesses those to come on to sites like this and spew all sorts of venom at will – I’ll never understand.
Dmac (cc81d9) — 10/13/2008 @ 6:04 pmOne interesting thing about the Democratic meme that the financial crisis was due to “Republican” deregulation. Notice that the Federal Reserve is pumping hundreds of billions of those icky capitalist U.S. dollars into Europe to prop up Europe’s banks.
And the entire nation of Iceland is essentially bankrupt after the collapse of its banks and the nationalization of them. It is feared in Iceland that the costs there may exceed the entire GNP of Iceland.
Britain is spending as much as we – in proportion – to prop up their banking industry.
SPQR (26be8b) — 10/13/2008 @ 6:08 pmComment by SPQR — 10/13/2008 @ 6:08 pm
These banks bought MBS notes on the assumption that they were perfectly safe, and now their portfolio’s are junk.
Another Drew (1d7115) — 10/13/2008 @ 6:15 pmThank you Freddie and Fannie (and Barney, and Chris, and Maxine, and Franklin, and James).
In large part, Another Drew, but they also had the problem of excessive domestic mortgage underwriting that suffered from similar bubbles in housing prices in the UK and Europe.
SPQR (26be8b) — 10/13/2008 @ 6:16 pmSure is a large amount of “irrational exuberance” going on in the financial world.
Another Drew (1d7115) — 10/13/2008 @ 6:18 pmI guess they didn’t get the memo ten-years ago.
An investment letter I have read since 1977 says be in gold and treasuries. I think this is prudent. This a bear market.
Mike K (2cf494) — 10/13/2008 @ 7:07 pmMike, I don’t think that there is that much upside to gold at the moment. In the past, much of gold’s appreciation on the dollar was as the dollar lost value against other currencies rather than as inflation hedge. Now more recently, you can see the dollar gaining against currencies like the Euro, so I’m skeptical of moving into gold now.
SPQR (26be8b) — 10/13/2008 @ 7:11 pmPC – How did that $400 billion meltdown from the Lehman CDS unwind thing that you were sweating about go on Friday? Did I miss the headlines about it?
daleyrocks (d9ec17) — 10/13/2008 @ 8:39 pmGet back to me when it closes 969points everyday..otherwise if goes up one day and tanks the next it was MY wasted money. Oh, wait, Federal Reserve Notes not dollars those are long since dead. I mean with NO GOLD STANDARD our money is piss.
Joe (eb6c37) — 10/14/2008 @ 12:47 pmdaleyrocks, they were priced out at 8.75 I think. Lower than expected, but not a huge deal. Settlement occurs on the 21st, iirc. It will be interesting to see what effect Paulson’s plan to nationalize banks is going to have.
PC (b4b303) — 10/14/2008 @ 3:28 pmPC – So how big were the losses? You were talking $400 billion.
daleyrocks (d9ec17) — 10/14/2008 @ 3:33 pm“I mean with NO GOLD STANDARD our money is piss.”
Joe – Are you suggesting only one man can save America? A crackpot bigot from Texas perhaps?
daleyrocks (d9ec17) — 10/14/2008 @ 3:35 pmdaleyrocks, I haven’t seen the numbers yet. The settlements haven’t happened. I’m not sure anyone other than the parties involved will see the numbers. Now that the US is buying equity shares in banks, I’m not sure how much it matters.
Do you think the DOW’s recent recovery has the presidential polls priced in?
PC (b4b303) — 10/14/2008 @ 11:30 pm