Well, today’s rally was largely due to the optimism surrounding a federal bailout plan would be finalized (or as the politicians like to call it, a “rescue plan”). Well after the market’s closed, the deal that was once inevitable fell apart. The problem is that you have a bunch of self seeking, power hungry people in one room, who all want to look like the hero, and that their own party benefits the most from whatever is eventually agreed upon, nothing gets accomplished and often times, the situation only is made worse – and all of this is done in the best interests of the “American People”. That cliché becomes old after a while honestly. Everyone knows what these politicians’ intentions really are. There’s a huge chasm between the Beltway and Wall Street, and when those on the Beltway decide to get involved with Wall Street, it becomes a bit frightening.
Well, despite today’s rally on news that a bailout agreement was immanent, the news that the deal has now fallen apart has sent futures down this evening around 1% or 120 points on the Dow. However, I think, as well Wall Street thinks, that a deal is inevitable and will eventually be made, they just have to get through all the maneuvering taking place on both sides of the aisle. Once that happens, a deal will happen. But I’m guessing that the markets have largely priced in an eventual agreement. We’ll see what happens, but should nonetheless, be an interesting weekend.
Here’s the Nasdaq and S&P charts…
