Looking through the archives, I found it interesting how every time there was a big one day drop in the DOW, people were posting news articles and
declaring that the end was nigh, and it was time to buy guns and ammo. Apparently the end isn't as close as some would like it to be.
Today, the market had the largest single day gain it has ever had FOR FIVE YEARS. While I'm sure the prophets of doom will come out to tell us this
is all a one day thing and the end is still nigh, I think the evidence speaks for itself. The traditional doomsday talking points about how oil prices
or the value of dollar will cause a crash seem to be quite wrong - the rally happened during the highest oil prices ever. The dollar made notable
gains against all major currencies. Moody's reaffirmed MBIA's AAA rating.
Claims that the Fed's cash infusion caused this also don't work out, because by doing cash infusion the Fed will not be doing an interest rate cut -
the positive impact of a cash infusion is washed out by the fact that no interest rate cut is likely to come now.
www.chicagotribune.com
(visit the link for the full news article)
[edit on 11-3-2008 by pacificwind]



