Thread: News Stories
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Old 2011-08-09, 17:51   Link #15597
Decagon
This was meaningless
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Join Date: Jan 2004
Location: Not on this site no more.
Age: 36
Quote:
Originally Posted by Ithekro View Post
The stock market went back up again today...so either it was a temporary thing, or just wild guessing again.
Yesterday was two things-- People reacting to the credit downgrade and people not wanting to be in weak positions in stocks when twitchy people sell in response to the credit downgrade. There was a large buyup of treasuries by many of these people if they didn't just go to cash, and today Bernanke put a stop to that by promising to keep bond rates low until 2013 (ie, people can't use t-bonds as a safe way to make some money to sit out a market downturn). He basically forced traders to put the money back into companies if they want to make money (ie, appease their investors/clients or keep their jobs as competent fund managers). Also there's probably a reaping of shorts that people profited from yesterday. The money from that is probably going back into the market as well.

edit
Expect uncomfortable volatility at least until those guys on wall street get their cheap anti-depressants and barbituates from Canada.

Last edited by Decagon; 2011-08-09 at 18:16.
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