It had been two days since my heartfelt prayer:Just before the U.S. markets opened, Paulson issued a statement reporting on the previous night’s meeting and launching a campaign for a “comprehensive approach” to resolve the crisis. He outlined a “troubled-asset relief program”—TARP—which would remove “illiquid assets that are weighing down our financial institutions and threatening our economy.”News of an insurance program for money-market funds and a comprehensive approach to the root causes of the crisis—no matter how ill defined—ignited a euphoric rally on Wall Street. The Dow Jones average rose four hundred points....
...On Friday afternoon, Paulson, in a teleconference with Geithner and other Fed and S.E.C. officials, said that it was time for President Bush to call the Chinese government in an effort to reassure it that, if it came to the aid of Morgan Stanley, it could count on U.S. government support. The Chinese were understandably cool to the prospect, since the China Investment Corporation, an arm of the government, had already made a $5.6-billion investment in Morgan Stanley in 2007, and had watched the value of its stake plunge in the ensuing financial turmoil....MUCH MORE
"Lord, Just for Today (and maybe tomorrow) Give Me the Strength...And as I mentioned in "Making Money the Jesse Livermore Way":
...to short gold and buy broad equity indexes."...
Since those bottoms Thursday morning the DJIA is up 1000 points, and here's a headline from MarketWatch: Gold tumbles most in 25 years after rescue plan.The day's most distressing news: Mary Kate and Ashley Olsen were fighting.
How is this "...the Jesse Livermore Way"? Mr. Livermore was a master speculator, especially on the short side but he was sometimes wrong, often early....
The Dow Jones Industrials closed up 368.75 and I appear to have gotten a bit giddy.
Here's what we were posting:
(again we have multiple timestamps that I know are incorrect, who knows why)
Bloggers Stunned by SEC Decree on Short Selling, Give Collective WTF?
Making Money the Jesse Livermore Way
Hitler Gets a Margin Call
Can Binge Drinking Save Social Security?
How Can You Think About Wall Street When Business Dispute Tearing Olsen Twins Apart?
Bear Market Rally
Before I forget, I should remind myself: "It's Still a Bear Market"11:10 a.m.
Okay, I'll just visit "How Bad Can it Get: Stock Charts 1928-1932".
Alrighty. DJIA 11,340, up 320.
Barry Ritholtz might be thinking along the same lines (go for his charts, I'm just pasting the commentary):
Industrials: Biggest 2 day rally since 1929
...Classic Bear Market rally:...
...Best 2 day the Dow has seen since 1929 -- and how'd that work out for ya?Spoiler ahead!
A 29% rally, followed by an 86% sell off . . .
Everything Rallies, Except For Yahoo* (and 129 of its friends on The List)
Rabble Babble: Is Citigroup making a move for WaMu? Asset Sales? (C, WM)
Six Must Reads on the Week of September 15-19 From MarketBeat
Pick your poison, The Wall Street Journal's David Gaffen is serving them up.6:20 p.m.
One Week Later, a New World Order
I can't keep track of all this
The Bailout Bonanza Scorecard, Revisited...MORE
Good Night and Good Luck (into the arms of morpheus)
It was far too early to be getting giddy, as the truth of what had just happened came out, things were about to go really bad.
And this became the theme song: