POLL: Massive rally if bailout plan unveiled?

Discussion in 'Economics' started by chewbacca, Dec 5, 2007.

Massive rally if bailout plan unveiled?

  1. yes

    16 vote(s)
  2. no

    4 vote(s)
  1. i think it maybe the case because:

    1 even the most pessimistic of loss estimates of 500 billion can easily be absorbed over 5 years. 200 billion is nothing in a 14 trillion dollar economy

    2 when has irresponsible people ever been punished in america.....unless you're some kid in the ghetto with some weed

    3 we've wasted 2 trillion to save iraq so why no waste 200 billion to save america?

    4 bank of canada has eased and BOE and ECB may ease or at least signal easing bias

    5 treasury yeilds near historic lows

    6 employment numbers still fairly strong
  2. Knee jerk higher for sure. However, this bailout will not create a new round of growth, and the fallout from debt will continue for several more quarters before it finds anything resembling a bottom. So ultimately, this would provide the underlying support for the santa rally. I still hold firmly to the notion that January will be an ugly as sin month for the markets.
  3. we have earnings recession and possible economy recession

    bailout might prevent a collapse but historical highs now with declining earnings?

    And don't forget - dollar is not down in 4q yet so earnings will be even worse

    where to rally?
  4. 1530's is my target (ES)
  5. nkhoi

    nkhoi Moderator