dougnhi

Short Covering Helps Boost Stocks

This kind of manipulation will come back to haunt in so many subtle ways. For all the folks that think that this was such a clever move by the fed, to swap nearly worthless paper for treasuries, I'm sure you'll regret the day eventually. Moral hazard aside, nobody's balance sheet has been exposed, no bad debts erased, no leverage unwound. It's still a mess, and the only thing that happened today is that Helicopter Ben gave bankers money that they'll turn around and pour into the stock market and commodities. This might temporarily help the market, but it doesn't help housing, interest rates, consumer spending, or prevent Moral Hazard. A sad day regardless of the 400pt swing. People think such short term thoughts...it's no wonder why we're in such a mess. Wake up folks...the fed isn't helping...the fed IS the problem. The games need to stop, the market should correct, and then we'll find out who's solvent and who's not. Until then, it's just a cheap trick.