Big Banks Demanding More
Stocks fell dramatically today on fears for the big banks, but came back to end even with hopes of a big bank bailout. Great example of how rumors move markets. Bonds moved sideways too.
The Dollar went sideways, but with great up and down volatility. Currency futures dealers are making money. Gold went sideways today.
Oil fell again, and gasoline rose again. How amazing. Oil has fallen over $10/barrel, and gasoline has only gone up. How is that possible, if not just total manipulation of markets. Why is this allowed to happen?? Oh well, just a moral question for you to ponder.
In the news today…..
Bank of American and Citi Group both need more “bailout” money. Congress hasn’t authorized the 2nd half of the $700B TARP money yet – and that’s the dilemma. The CEO of Bank of America went to Paulson in December and THREATENED to pull out of the Merrill Lynch purchase if they DIDN’T get another “bailout”. Paulson promised him the bailout. But, he couldn’t give the money because the first half of the TARP money is already spent. So, Paulson got Bush and Obama to start pushing on Congress to free up the money now.
Something smells in Denmark. (Someone said that once, and it applies here.)
The fact is that all the big banks are going to be demanding more TARP money EVERY QUARTER for the foreseeable future. Otherwise, they go bankrupt. Not a pretty picture, and our “leaders” don’t have any alternatives.
But, there is an alternative. ALL the TARP money could be put into backing 4 new banks, and allow the other banks to go under. That way the US would have an alternative banking system that is solvent, and the original banks would have to take the consequences of their past greed.
And, lastly, please vote out all the “leaders” in Congress who are just not doing much to help the US public. By “leaders” I mean everyone.
Here are Today’s numbers:
Dow Jones 30 Industrial – 8212 (up 12 points)
10 Year Treasury Bond – 2.20% (down 0.01%)
Euro – $1.3155
Gold – $807 (down $2)
Oil – $34.77 (down $1.88)
Gasoline – $1.17 (up $0.01) – still a crazy gasoline market – do you feel the pain??
