I’m sure all of us would like to have our world in better condition than it is today. The news in the stock market was what I was expecting and there should be more to come.
The financial sector didn’t continue it’s rally today for many reason that may take until next week to explain it all. What I will say is that the confidence in the stock markets is definitely not back. The DOW closed at 11,015 down just over 372 points.
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Goldman Sachs and Morgan Stanley came up with a nifty concept to avoid the turmoil as much as possible by transforming themselves from investment banks into traditional bank holding companies. By becoming bank holding companies, Morgan Stanley and Goldman will come under the scrutiny of national banking regulators and will be subject to new capital requirements. Too bad that the investors of Goldman Sachs didn’t think of it as a good idea as of right now, but let’s see what happens in the days and weeks ahead.
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The government has found something else to bitch about to each other than actually coming out with some real clear cut plans than just spending $700 billion of our money. I heard on CNBC tonight that that amount of money would pay off all failed mortgages that were held by Fannie Mae (I might have heard wrong, but I’m looking into it). If that’s the case why is the Treasury Dept. asking for so much? Maybe they needed some money for lunch this week, who knows?
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The 10 day suspension of shorting over 800 financial type stocks didn’t go over too well today either. It seems that what’s the sense of buying a stock if you can’t short it so you can hedge your bet. I guess it’s not a good idea to buy into a company for the sole purpose of the value to rise.
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The dollar lost some strength today as oil went on a 15% rally to close at $120.92 at the last trade that I saw tonight. Heating oil also jumped on the expected cold weather season that is on it’s way. Today is the first day of autumn.
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