Wall Street Shows Optimism That Crisis Is Fading

New York Times:

Stocks started the second quarter with a soaring rally on Tuesday that sent the Dow Jones industrial average up nearly 400 points, its best performance in two weeks, as investors found reasons to take heart in a fresh round of mortgage-related write-offs at UBS and Deutsche Bank and a capital infusion at Lehman Brothers, the brokerage firm.

The Standard & Poor's 500-stock index gained 3.6 percent on the strength of a surge in shares of financial services firms. Lehman Brothers, the bond insurer MBIA and the mortgage giant Fannie Mae were among the index's biggest gainers.

Read the whole story: New York Times

Comments

[maggiemae656]

Just goes to show how easily those people holding the working capital dollars of this country can be manipulated. Besides, what good is the value of a share of stock other than more money to pay out to company executives? A real feel good kind of thing, right?

Imagine what would happen to these poor people if they were able to somehow get in touch with reality...they may have to deal with the economic failures of our system on the same level as the rest of us--I have a feeling they would grab their dollars and start stuffing their mattresses. Rest assured, Wall Street's Uncle Sam will never allow that to happen...

[WIpatriot]

Oh, I think they'll be getting in touch with reality in a little while, maggie, just you watch.

Don't play, just watch.

[ENK727]

Wow.. last week it was doom and gloom... now things are suddenly looking up. You don't know what to believe anymore.

[WIpatriot]

The whipsaw reactions in the market are causing deeper stress fractures. One of these days it's going to just snap...

[Oldbuck]

These darn guy on Wall Street are going to have to quite smoking that wacky tobacco they wish that it was fading sorry fellows the chicken have come home to roost. I can see the guys in their little cubicles sell the sub primes, you are really going to have to do some creative accounting to make this fade.

[aigeanta]

Umm...20% of the production workers at 3 factories in the US operations of my high-tech manufacturing employer were laid off last Friday. From my front-lines experiences, we've just barely hit our pace on this downturn.

[JimHancock]

Just another sucker rally in a bear market ...please move along...

[totalliberal]

That's good. No thanks needed. Can I close my wallet now, wouldn't want those Brazillionairs to be forced to sell one of their yachts.

[Stretchumall]

And in other Huffpost News,
"Analysts: 200,000 Banking Industry Layoffs Predicted"

[ErnestineBass]

LMAO. Yep, I noticed that too. Along with potential layoffs in the space program, and...

What's wrong with this picture?

[WIpatriot]

The numbers are pure fiction.

[EinChicago]

Probably the fact that you're willing to believe "analysts". The big bears are moving their focus to the european markets. They tried here, but teh fed, rightly or wrongly, is determined not to capitulate to bear traders and is fighting them tooth and nail. Aisa and the EU markets are much easier target for bear strategies. Especially as the EU wave of big writedowns and panics are just starting whereas the worst panic stage is pretty much over here. Gold is one of teh best indicators, and it's dropping faster thongs at a sorority party