âAt current rates of inflation, the constraint imposed by the zero lower bound on nominal interest rates is too tightâ and the ârisk of deflation is higher than desirable,â Bernanke said. âHigh unemployment is currently forecast to persist for some time.â __________________________________________________)) In otherwords, this market is not going to tank because it is being manipulated.
Not sure about the "doomsday" scenario, however it's very suspect when the futures get bid up, even when it's only a few hyped stocks to generate new highs and lack of participation of the financials. One event which may cause selling is if the Bush tax cuts are allowed to expire. The 15% cap on long term gains jumps to 20% on Jan 1st, 2011. With the run up over 70% on the S&P, it's reasonable to assume that for some who have locked in long term gains to sell by end of year. Just wait until the November elections, perhaps in December, to see some heavy selling. As of now, the market seems to have forgotten about red days.
you call this doomsday? we didnt even give back yesterdays gains yet. i thought it would be much worse today.
s+p ralled what...9% in the last month? currently down .8% and it's doomsday? and with the ramp up going into full effect now, we might even close green!
Treasury plans sale of 1.5 billion Citi shares (marketwatch.com) The Treasury Department said it's entered into its fourth pre-arranged trading plan to sell Citigroup common stock, as Morgan Stanley will sell 1.5 billion shares as Treasury's sales agent. The sale of 1.5 billion additional shares of Citigroup common stock would bring Treasury's holdings of Citigroup common stock to approximately 7% of total shares outstanding, down from a high of approximately 27%. It would also mean that Treasury had disposed of nearly three-quarters of its original 7.7 billion share common stock stake in Citigroup. To date, taxpayers have received a total of $41.6 billion in revenue from the $45 billion TARP investment through repayments, dividends and interest, the sale of common stock, and the sale of other securities, Treasury said. CITIGROUP days are numbers