Early Take
As the House vote on the bailout bill approaches, the market is acting almost like it’s a Fed day – as it rallies up in anticipation of a rally.
The problem that I see with a ‘bailout rally’ is that the market has known, for days now, that this bill would likely be passed, so that should already be priced in. Add to that the fact that short-sellers have been sent to detention camps, robbing the market of some much needed fuel to get a meaningful rally going.
Nothing to get too excited about at this point. We’ll see what happens.
1 Comment »
RSS feed for comments on this post. Trackback URI
Leave a comment
Line and paragraph breaks automatic, e-mail address never displayed, HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
The market doesn’t care all that much about the vote. The market knows it’s a temp bandaide that will help a very few large financial companies and foreign banks.
We have Calfornia about to run out of money (still. Again.) because they’ve overspent for years and years. We have an economy in rough shape and jobs on the downside. This isn’t going to be anything close to a cure-all.
Comment by Maria — 10/3/2008 @ 11:18 am