[Pen-l] Re: News Alert: Dow Leaps 497 Points on Enthusiasm Over Treasury Plan

[Jim Devine <jdevine03@xxxxxxxxx>]

If the Obama people were smart, they would ignore this surge rather
than seeing it as a needed endorsement for the Geithner plan. The
stock market people need someone (Obama, Geithner) to act like the
adult in the room, making the financiers take their medicine (going
against their short-term interest).

The Geithner plan does not involve acting like an adult. Instead, it's
just another version of the "give the finance guys what they want"
approach (deregulation, Paulson's various plans). As spoiled brats,
the stock market people are cheering the fact that they're going to be
spoiled some more. Of course, the mainstream media will see this stock
surge as wonderful, as a good sign of recovery, etc.

This plan is a new version of "regulatory forbearance" (not enforcing
regulations so that zombie financiers an continue to shamble onward)
that will raise the cost of the bail-out to taxpayers and likely the
rest of the world.

> Breaking News Alert
> The New York Times
> Monday, March 23, 2009 -- 4:05 PM ET
> -----
>
> Dow Leaps 497 Points on Enthusiasm Over Treasury Plan
>
> Wall Street reignited a two-week rally on Monday, fueled by
> the government's plan to help banks remove bad assets from
> their books. The government's program would tap money from
> the government's $700 billion financial rescue fund and also
> involve help from the Federal Reserve, the Federal Deposit
> Insurance Corporation and the participation of private
> investors. The Dow Jones industrial average closed up nearly
> 500 points, or 6.8 percent, and the broader Standard & Poor's
> 500-stock index rose more than 7 percent. The Nasdaq rose
> more than 98 points or 6.7 percent.
-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
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