Geithner Bounce? Dow Surges 494
Good idea?
FOX-A wave of buying swept Wall Street late Friday after news broke that President-elect Barack Obama has tapped New York Fed Chief Timothy Geithner as the next Treasury Secretary, overshadowing giant question marks hovering over Citigroup.
The late-day surge helped ease the pain of a week that saw the Dow lose roughly 500 points and the S&P 500 plummet to levels unseen since 1997.
Today’s Market
The Dow Jones Industrial Average jumped 494.13 points, or 6.54%, to 8046.42, the broader S&P 500 picked up 47.59 points, or 6.32%, to 800.03 and the Nasdaq Composite added 68.23 points, or 5.18%, to 1384.35. The consumer-friendly FOX 50 gained 38.13 points, or 6.44%, to 629.89.
November 22nd, 2008 at 10:07 am
Interesting…John and others complain when conservatives call it the ‘Obama recession’, but give credit to the ultimate liberal when there is a bounce back.
You can’t have it both ways Obamaniacs.
November 22nd, 2008 at 10:48 am
Bart
Drugs this early in morning is not healthy.
November 22nd, 2008 at 1:33 pm
I think you are looking for correlations where there may not be any John.
Yesterday was the Option Expiration day, anything you saw in the market had nothing to do fundamentals, or even reality.
Some of Geithner’s remarks over the past couple of years:
November 17, 2004 Timothy F. Geithner Our overall judgement is that the U.S. financial system today is significantly stronger than it was in 1998. It has proven to be quite strong in the face of a number of fairly substantial recent adverse events. And there is some evidence that hedge funds have helped contribute to this resilience, not just in the general contribution they provide by taking on risk, but as a source of liquidity in periods of increased stress and risk aversion in the rest of the financial system.
Speech September 15, 2006 Timothy F. Geithner, President and Chief Executive Officer The resiliency we have observed over the past decade or so is not just good luck. It is the consequence of efforts by regulatory, supervisory and private financial institutions to address previous sources of systemic instability. Risk management has improved significantly, and the major firms have made substantial progress toward more sophisticated measurement and control of concentration to specific risk factors. What seems to have been most critical in preventing financial market turmoil from translating into a significant reduction in credit provision by banks and other financial institutions were the steps taken by regulatory authorities and financial institutions alike to strengthen capital in the core of the financial system, and to measure and manage risk. These efforts have most notably manifested themselves in increased levels of risk-adjusted capital in the core of the system relative to what prevailed in the early 1990s. In the United States, for example, tier-one risk-based capital ratios have stabilized near 8.5 percent, considerably higher than the estimated levels around 6.5 percent for the early 1990s. This is based on a relatively crude measure of risk, but the direction of the improvement is right and the magnitude of the change is significant. Relative to the conditions that prevailed in the early 1990s, the higher levels of capital in the core now provide a larger buffer against shocks and enhance the ability of the banking industry to act as a critical stabilizer in times of stress by providing liquidity to the corporate sector. When financial markets dry up, firms turn to banks and their unused loan commitments and lines of credit. Banks are in a position to fund this liquidity because transaction deposits tend to flow into the banking sector. In times of crisis, it appears that U.S. investors now run to banks, not away from them.
I’m not impressed. Strike 1.
November 22nd, 2008 at 1:39 pm
Did anyone else here realize that the talking head Andrea Mitchell (in the video) is Alan Greenspan’s wife?
Anyone else see a clear conflict of interest when she is reporting on economic, and specifically Federal Reserve issues? She should have to wear a big sign that says “I’m owned by the Federal Reserve”.
November 22nd, 2008 at 2:42 pm
I’m probably not old enough to see a documentary exposing all the “connections” in DC. IT’S A ORGY UP THERE!
(disgusting)
November 23rd, 2008 at 2:23 pm
Hey, maybe this is a surge President-Elect Obama can believe in, and he hopes we do as well. That would be change.
November 23rd, 2008 at 6:30 pm
GOPers mess it up.
Democrats clean it up.
Read history.