The Stock Market has been Saved!

Oh my goodness, there is celebration in the street! The economy has had a massive turnaround! Three days of solid gain in the Stock Market Indexes, the largest gain in the S&P 500 in a few months, even the monthly graph shows a little positive growth. There is euphoria in the streets! But why has the market rebounded these last few days? Oh, that answer is easy

The reason that the market has rebounded is because the President's recovery system has started to kick in. The President has now saved the world from utter destruction, right??

Absolutely wrong! The traders on the floor of the market, along with brokers are not stupid, maybe a little reactionary, but not stupid at all. The reason that the market went up is simply because Citi Bank is going to post a profit. While they may post a profit because of the statement they made, it was something entirely different than what has been said by most people, including those in the government. A private company expressed hope, optimism, and confidence in the economy. But why is this so important?

It becomes so important because it proves that Capitalism works, and that socialism doesn't. People will claim that because Obama pumped cash into the banks, the banks were able to post profits, thus Obama is to credit for the upswing. If that were true, why then did the economy not gain ground when the money was pumped in. It is well assumed that Treasure Bonds are the safest investment because they are backed by the Government, and where is the government going? Nowhere! But why didn't the economy go up when the money went in of the Government was such a worthy investor/creditor?

Because financial people know better than to trust the government to run a capitalistic market. Whenever that happens, it leads to Socialism, the opposite direction in which investors want to go. It took a private company to post a profit for the market to rebound, simply because it re-instilled confidence in a tried and true system.

And to make a last point, it has not been released (to my knowledge) how much of a profit Citi will post, yet it has led to 2 200+ point gain days. The Government is pumping over $775 Billion, and then watched as the market drop over 1000 points in a manner of days. That should say very clearly that we are trusting the recovery to the wrong people, the Government.