Halleluya! - PoliGazette Was Right!
The Dow Jones, the (important) American stock market, performed well on Monday. Well, calling its performance ‘well’ is a signficant understatement. When the markets closed, the Dow had surged 900 points. That is a gigantic one-day jump.
It is once again confirmation that the bailout bill had to be passed, but that it took some time for it to have its effect on the stock markets.
Firstly, the U.S. government had to show it would use the powers granted to it by Congress.
Secondly, the U.S. bailout bill would not be enough; Europe and the G7 too had to dedicate themselves to a grand plan that would prevent economies worldwide from collapsing.
The European Union has decided to work together, and the G7 (richest industrial nations) have joined forces. The U.S. government has started using its new powers (and money) and… stock markets surge.
Since so many commenters wondered last week whether we would retract our support for the bailout bill (and other economic plans), I wonder whether they will now consider admitting they, not we, were wrong?
For those who are wondering: it was the biggest one-day surge in American stock markets in seven decades.
…it was the biggest one-day surge in American stock markets in seven decades.
I call that volatility.
Michael, financial markets usually perform differently than other markets. It will not be at least until after the Christmas orgy that any evaluation can take place. In late ‘29, the stock market performed similarly, but it was subsequent legislation and British actions which sparked the depression. We still have a few years, and precious few tools to use, until we can cheer.
It is indeed one of the best days for the Dow Jones since, well, the Great Depression. I believe the best in percentage terms was in 1931 or so. In fact, many of the best one day surges in the Dow’s history came during the early days after the big crash. Such volatility isn’t actually a good sign, and one day does not a trend make.
The Dow ended at 9,387? A year ago it was over 14,000. It was over 11,000 last month. The last time it closed below 9400 hundred was September of 2003. Keep some perspective. The market hasn’t yet stabilized, and the effects of the bailout, which is now looking to be a quite different plan than originally advertised, is still a long way from being determined.
I agree with Baltimoron and BJ- yesterday was a great rally but a rally doesn’t mean stability. It’s way too soon to judge the effects of the bailout bill, and just as people were wrong to chide you and Jason for your support of it when the market tanked after it passed, it’s just as wrong to ask for other people to retract their opposition to the bill.