Sunday, October 12, 2008

Four Pieces of Good News: Will Markets Turn Up?

Four pieces of good news over the weekend:

Fed approves Wells Fargo's improved bid for Wachovia, ending uncertainty about the bank.

European leaders approve a joint plan to inject cash into banks.

The White House backs away from its convoluted rescue plan for a more direct (and necessary) cash infusion into banks.

The McCain campaign decides to tone down the fire-breathing "terrorist" rhetoric.

Taken together, this should be a signal that governments and politicians are finally doing something serious about the crisis.

Will this be enough to see the markets turn up on Monday...or at the very least, stop their decline? My sense is they will still gyrate madly and may still end up down slightly, but ideally this news is good enough that we won't see the 1.5 to 5% drops we saw every day the past week.

1 comment:

Jim Farrell said...

We can all use some good news. Keep slugging--I'm enjoying your blog.