The Economy Guy

 Stocks jumped straight up today because all the fear left the market, and greed entered the door.  The Dow ended up 936 points – a massive move upwards.

While other things had some big moves, I consider the rest of the market to be moving sideways.

In the news today….

While the G-8 and the G-20 met this weekend, nothing came out of their meeting to endear themselves to stock market investors.  However, the EURO countries met on Sunday, and committed to “not allow any bank to fail.”  They said they would use whatever means necessary to secure all people’s deposits.

Paulson wasted 2 weeks in not wanting to purchase bank stocks, but only toxic waste, and now has flip-flopped on this issue, and is steaming straight ahead to purchase shares.  The Bank of England’s first action was to purchase British bank stocks – and made Paulson look like a sluggish player at this game.

Tonight’s Dinner Conversation….

What is the stock market going to do tomorrow?  The is a great debate going on among stock market players – Did we see the bottom, or is this UP just a sucker punch and the market will be going lower?

That is for you to discuss tonight.

Some key inputs to that discussion should include whether of not banks have started lending money.  The bond market didn’t move at all today – what does that mean?  The Bond Market is a much more sober market than the emotional stock market – and if Bonds don’t move, does that mean nothing has been fixed?

Gasoline Prices….

My son would be pleased to point out that gasoline prices are coming down just before the election – as he predicted about a year ago.  If you believe this is not a coincidence, then you believe in a conspiracy theory.  Don’t rule anything out of your thinking to explain the unexplainable.

Here are Today’s numbers:
Dow Jones 30 Industrial – 9388 (up 936 points)
10 Year Treasury Bond – 3.86% (no change)
Euro – $1.3568
Gold – $843 (down $17)
Oil – $81.19 (up $3.49)
Gasoline – $1.92 (up $0.11)