Dow jumps over 700 as governments pledge bank aid

[amyrose2712]

Source: AP

Dow jumps over 700 as governments pledge bank aid


NEW YORK - Wall Street snapped back from last week's devastating losses after major governments announced further steps to support the global banking system, including plans by the U.S. Treasury to buy stocks of some banks. All the major indexes rose more than 8 percent, and the Dow Jones industrials rose more than 700 points.

The hope on Wall Street was that the market was finding a bottom after eight sessions of devastating losses that sent the Dow down nearly 2,400 points. But while a rebound had been expected at some point, investors can expect to see back-and-forth trading in the coming days and weeks as investors work through their concerns about the banking sector, the stagnant credit markets and the overall economy.

Despite the magnitude of the advance, Denis Amato, chief investment officer at Ancora Advisors, said it's too soon to say whether the market has started to carve out a bottom and that the credit markets where many companies turn for day-to-day loans will need to loosen for stocks to hold their gains. With the U.S. bond markets and banks closed Monday for Columbus Day, it was difficult for investors to gauge the reaction of the credit markets to actions by major governments.

Read more: http://news.yahoo.com/s/ap/20081013/ap_on_bi_st_ma_re/wall_street

[fascisthunter]

1. The greedy Got Their Way Again... how touching

[DangerDave921]

10. You could not be more wrong

Greedy? I'm a middle-class guy with two kids. Is it greedy because I want my IRA to do well?

Is it greedy for average workers with a pension plan to want the market to do well?

How about my 70 year old dad who is supposed to be retired but is now looking for work at Home Depot? Is it greedy for him to want the market to do well?

You have to realize how many millions of everyday americans are in the market, either directly or through mutual funds or 401(k)'s or IRA's or pension funds. A crashing market does not help anyone, and a rising market helps everyone.

[SahaleArm]

14. Your IRA has gone up on borrowed money...

You can't steal from Peter to pay Paul forever

[fascisthunter]

16. somehow sucking up to Wall Street makes people comfortable

"just give them what they want, even if we the tax payers have to pay for it."

Yeah.... that works out swell for kids and all.

[SahaleArm]

19. Reagan Democrats - Give me mine and screw the kids n/t

[DangerDave921]

24. WTF?

How does the market doing well screw the kids? The market going up does not hurt future generations at all. I can't even comprehen what point you're trying to make.

Also, I am against the stupid bailout. But that's another issue. The market itself is a good thing and when it does well, it helps everyone who has money in the market.

[bean fidhleir]

26. Your perspective is a little too narrow

When a particular horse wins at the track, or a particular number comes up in the roulette wheel at the casino, it helps everyone who's bet on that horse or that number. But "everyone" is a small number.

And if the race is fixed, and the wheel is crooked, then what? Thousands of people lose so that crooks make out...and you get a few dollars to keep you in the game so that when they take you for everything you've got next time, there'll be some other "everyone" to say "the market/casino/racetrack is a good thing".

Nobody will rig the system to scoop a dollar bet from the corner store's book -- but when it gets into the billions of dollars? Betcherass they'll rig it.

[David Dunham]

2. The Dow will fall later in the week as companies report weak earnings

[Democrats_win]

3. Even more now 944. The great temper tantrum of Fall 2008 is over.

Fraud Street lives in time for Halloween.

[htuttle]

4. In other news, the unemployment compensation fund is out of money...

...so they're going to raise payroll taxes on the working class. We don't rank high enough for a bailout, I guess...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4228617

:mad:

[Kalifornia.Kid]

5. Maybe It Was In Response to Obama's Economic Rescue Plan ...

"I'm proposing a number of steps that we should take immediately to stabilize our financial system, provide relief to families and communities, and help struggling homeowners," Obama said at a campaign event in Toledo, Ohio. "It's a plan that begins with one word that's on everyone's mind, and it's easy to spell: J-O-B-S."

Source: http://www.cnn.com/2008/POLITICS/10/13/campaign.wrap/index.html

[OakCliffDem]

9. More like the response to Bush pumping in freshly printed money to help the McCain Campaign

[Orrex]

6. That sure seems like a healthy, stable response from a deeply wounded market and economy

I'm sure that we'll continue to see 1000-point gains every time the gov't drops $700bn into the market.

[Javaman]

8. Yeah at that rate all they need to do is dump in another 3.5 trillion to get it back to 14k. nt

[blueclown]

7. The calm before the storm.

Traders thought that Friday was the bottom, so today they bought stocks en masse.

When they find out that Friday wasn't the bottom, and the worst is yet to come, there will be a massive sell-off. I predict that it will likely happen by the end of the week.

The markets are always good for over-reaction. We are not out of this crisis by any stretch of the imagination, although G7 deserves credit for a swift response.

[Stump]

11. I hope you're wrong...n/t

[blueclown]

17. Swings of this magnitude are rarely ever based on the fundamentals.

They are based on emotion.

[SahaleArm]

21. A classic bear market rally

This secular bear has just started. Expect lots of losses followed by a big rally as the market heads south of 7000.

[ThePowerofWill]

12. Only a fool will/would believe this is sustainable.

On T.v. the made a telling statement about todays lil' rally. That statement was that this was the biggest rally since 1930. Yep, the biggest since the crash of '29, where the real bottom was not seen till '36, or '37.

With in a couple of weeks after "Black Monday" stocks began to rise( a group of large investors working to raise market levels). However shortly after they started falling again as bad news just kept pouring in, and credit began to get harder and harder to obtain more jobs were lost, and more places closed.

Point being the big crash was not a one day, or one/two month thing. The big crash was more of a long grinding ride downhill.

[sarcasmo]

13. This is the rise for all the suckers.

Invest what you have left before it falls like a Rock after the holiday numbers.

[Purveyor]

15. Oh right. A bunch of world leaders meet over the weekend and have a 'group grope' so all is cured?

This credit crisis took years to come about and, imho, there is no way in hell that it was solved over the span of a couple of days.

What happens when these banks that are receiving gov't monies still end up in the gutter?

[TripleEntente]

18. The spike won't last

Spikes in the stock markets have recently lasted no more than 1 or 2 days.

[TripleEntente]

20. This won't last

Recent spikes in wall street have lasted 1 or 2 days. Watch the market crumble tomorrow.

[bulloney]

22. Sean Insanity today pointed to today's Dow market as proof that the market corrects itself.

Yessir, after the government has already pumped hundreds of billions of dollars in the system and has begun to nationalize some of our largest banks. After all of this, Insanity makes this claim after ONE big day of gains in the stock market.

The markets are very volatile. It gained some 930 points today. Who's to say it won't lose it all and then some by the end of the week?

Critical thinking is obviously something his brain is not capable of doing.

[tabasco]

23. Rich people don't need no stinkin' bootstraps!

You poor folks better have some to pull on.

[George II]

25. Stale news...it was up over 900 points.