Big rally helps Wall Street recoup part of record plunge

[UpInArms]

Source: AFP

NEW YORK (AFP) - A powerful rally Tuesday helped Wall Street recoup some losses from Monday's rout, amid renewed hope for US passage of a financial rescue package.

The Dow Jones Industrial Average leapt 485.21 points (4.68 percent) to 10,850.66 just after the closing bell, in one of the biggest single-day point gains a day after the largest one-day point loss for the blue-chip index.

The Nasdaq jumped 98.60 points (4.97 percent) to 2,082.33 and the broad-market Standard & Poor's 500 index rallied 58.34 points (5.27 percent) to a preliminary closing of 1,164.73.

Market action came after a record plunge of 777 points for the blue-chip Dow index Monday in the wake of a rejection by the US House of Representatives of a massive 700-billion-dollar plan to aid the troubled banking sector.

"The stock market's drop yesterday got worldwide attention," said Gregory Drahuschak at Janney Montgomery Scott.

"Every local and national radio and television news program had the drop as the lead story. This and a more organized chorus of business voices telling all who care to hear that the economy needs some plan could help to swing voter sentiment enough for Congressmen to look more favorably at a moderately revised rescue plan."

Read more: http://news.yahoo.com/s/afp/20080930/bs_afp/stocksusclose

---

so, was the "drop" designed to get "worldwide attention"?

hmmm....

the plot thickens

[mbperrin]

1. Of course the drop was engineered to create panic. Trouble is, the

"boys" on Wall Street then either had to back in for the bargains or let Asian and European investors beat them to it.

Dollar strengthened today against the euro and the yen, so it looks like some folks over there were buying dollars for some reason.

They need to quit hollering about the "drop", because in case they didn't notice, about 2/3 of it came back just today, and the market will rise more tomorrow. 7th grade tantrum tactics when their "easy pickins" didn't materialize.

No bailout of any kind whatsoever is needed. Congress needs to go home now.

[UK populist]

3. sounds more like it was the FED and the PPT

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x389195

Read the article after the link and you will see how they are manipulating the Dollar in the commodities and financial markets.

[bhikkhu]

9. A bounce is contrary to their agenda at the moment,

which is to get their 700 billion quickly, whatever the cost.

[JeanGrey]

5. Absolutely. I can't believe they are even considering it.

Leave the market alone. It will do fine. Those that are buying stocks now will do well when the market goes back up. If only we hadn't pressured Fannie Mae and Freddie Mac into giving out home loans like Halloween Candy.

[depakid]

7. How many times does it take fot it to sink in?

This is a crippling problem with THE GLOBAL CREDIT MARKETS -not the stock market, although drops in the stock market ARE SYMPTOMATIC of the serious underlying problems.

:banghead:

[hay rick]

8. It's the "Wall Street bailout"

And you want us to watch LIBOR instead?

[Lucky Luciano]

11. It is ll about LIBOR right now actually...

[WriteDown]

2. This may put the final nail in the coffin...

for the bailout. Obama should have never gotten behind it. If McCain actually prevented it, then hats off to him for this one.

[sarcasmo]

4. Economic Terror from Bush prior to him leaving the White House.

Nothing new for this Regime, don't let the door hit you in the A$$ on the way out.

[unkachuck]

6. "The Dow Jones Industrial Average leapt 485.21 points..."

....we don't need no stinkin' bailout, the wall street thieves are doing just fine!

....and it's only ONE day after the supposed ending of the world....will the hurry-up 'give us your money or we'll crash you economy' crowd now have more credibility problems with Main-Street?....you wall street slime-balls could have at least given us a week of down-turns to prove your sincerity....

....and they wonder why people don't believe or trust them....

[enpassant]

10. Big Big Panic and BTW -- So much for the "little guy"

It created so much panic that it caused our elected lawmakers to take solace in the gravity of the situation and realize that the bailout vote must be redone immediately for the good of the "little guy". The Senate is convening on Wednesday to vote again on the bailout bill. Obama and McCain are flying in.

http://www.nytimes.com/2008/10/01/business/01bailout.html?hp


So the Republicans little ploy of pinning the unpopular bailout on the Democrats didn't work so now they get to just do it all over again. But this time they'll give their Wall Street everything they're asking for plus some extra tax breaks. Gotta keep that partnership strong. Wouldn't want any bills like consumer credit card protection sneaking through and actually passing.


I don't think the Democrats should play along. Where's the real leadership in this country? How about sitting down with several respected economists (you know guys with PhD s) and hammering out a real plan that addresses the root of the problem. How about a Democratic initiative. What do folks think of that idea?

Please write your Senators. Foolish me, I actually thought the little guy won one.

-- Ep

[UpInArms]

12. welcome to DU, enpassant!

glad to have you here :hi:

[underpants]

13. Gee wonder who bought all that underpriced stock

:shrug:

[hay rick]

14. And wonder if it will still be underpriced by Friday?

Senate vote Wednesday. House returns Thursday. Jobs report Friday. Can you say roller coaster?

[LatteLibertine]

15. Want to oppose the bailout?

Below is a good site-

http://www.votenobailout.org/

[tavalon]

16. Market volatility spun as a rebound?

I guess it's better to lie right now.

[underpants]

17. It's like quoting yourself as a source

Like Jerome Corsi does in his latest rag book (9 of his first 11 footnotes are from HIS writings)
Cheney/Rice quoting their leaks to Judith Miller/NYT on Sunday morning TV shows (the day the leaks are published)
Wall Street as a counter to...uh....Wall Street

What could possibly go wrong??? :shrug: