A row of houses in foreclosure
We just had the biggest two-day rally in over 20 years, coming on the heels of the recent prolonged crash from mid-september onward. Analysts are giving credit to Barack Obama and the announcement today (and Friday) of his economic team. Combine that with Citi’s personal rescue plan, and you’ve got people apparently willing to invest once again. At least for a couple of days.
This, from CNN:
“There is a massive amount of liquidity on the sidelines but it’s sitting behind a dam of fear,” said Stephen Leeb, president at Leeb Capital Management.
He said that there needs to be a major catalyst to really start it flowing, but Monday’s news had certainly caused some cracks in the dam. In particular, the nomination of Timothy Geithner for secretary of the Treasury was helping Wall Street.
Am I the only one at least marginally concerned that our entire financial system behaves like a petulant child, with all its whims and overreactions and fits?
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