Bill Cara says...Don't worry...be happy
October 24, 2008
Daily Report for Fri, Oct 24, 2008
Panic has overcome global equity markets this morning. There are no bids from traders. Cash has been declared king. The fact that headlines shout that the global recession is at fault is too disgusting for words.
The world is at war today: it’s the people versus the bankers. The governments of the world must decide today and over the weekend precisely who they will support. Conflict of interest is and has been the issue. Let there be no doubt that should the G-20 governments decide to support the bankers, the people will revolt.
Will governments do the right thing, or is the world staring at financial Armageddon?
Yesterday, the DJIA +172.04 +2.02% to 8691.25), S&P 500 (+11.33 +1.26% to 908.11), and NASDAQ Composite (-11.84 -0.73% to 1603.91) reflected only the final hour of buying that appeared to some traders as coming from the forces of intervention. As the NYSE on-floor reporter said (to paraphrase), “One trader gushed with the last minute orders he was holding. Where are they coming from?”
The deception is obvious today. Those orders probably came from the Fed open market operations aka the Plunge Protection Team. This morning, traders are now saying, “Plunge this!”
