Why is the market up today?

[ColbertWatcher]

The banks got their bailout and car makers will get theirs even as many states are gutting services. Yesterday thousands of people were laid off, millions more are still out of work, and who knows how many have lost their homes to foreclosures.

Why is the market up?

[nevergiveup]

1. anticipation of stimulus package?

I thought this was already priced in but can't think of anything else.

[ColbertWatcher]

7. Maybe so. n/t

[spanone]

2. hope?

[elleng]

3. Silly to try to attribute, imo.

.

[ColbertWatcher]

5. Well ...

... the GOP-controlled media always blame the President when the market goes down and credit the free market when it goes up.

I remember way back in the eighties every time there were layoffs the market would go up--I'm just trying to figure out what's going on this time.

[marketcrazy1]

4. rumor has it

the Treasury is going to take all the bad debt off of the hands of the banks ( possibly several trillion dollars worth ) this is a HUGE win for the banks, all the financials were up big today... taxpayers should be outraged but they will more likely praise our fearless leaders for their bold action!! ( until it all falls apart, and it will in time ).... scares the shit out of me!!

[kirby]

6. Cuz the Treasury is going to be borrowing $800 Billion from China

to stimulate the economy. That is going to have to have a short term positive impact with job creation and such.

[ColbertWatcher]

8. You really think so?

Would you mind explaining how this will create jobs?

I'm not trying to be snarking, I really want to know what's going on.

[kirby]

12. How could it not create jobs?

First I guess you need to define 'create jobs'. If the economy is getting worse and this package prevents 3 million people from being laid off, did you create a job or not? That is like the tax increase vs return taxes to their old rate argument. Regardless..

Unlike the previous program which gave money to banks to 'shore up their capital reserves', this one will fund projects. Projects need people to work on them so that create jobs. It also gives direct grant money to states so states do not have to cut their spending as deep. One provision is modernizing 75% of federal office buildings. That will employ contractors and such in that trade. Converting medical records to be electronic will create IT/programmer jobs. The much republican maligned $200 million dollars to re-sod the Capitol will cause landscapers and nurseries to have work, etc...

I dont understand how anyone can think this will not create any jobs. Who is going to do all the work on the included projects?

[ColbertWatcher]

14. Good point about jobs in D.C. Thank you for responding. n/t

[catzies]

9. Layoffs can be good for the stock price; the hell with the people.

There's this notion that layoffs mean increase in profits & that's good, therefore layoffs = good.

[ColbertWatcher]

11. That's what I thought, but ...

... it could also be the stimulus package passed, too.

[slipslidingaway]

10. Plans for the taxpayers to buy the toxic assets from banks...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4923414&mesg_id=4923414

[ikojo]

13. What is bad news for working people is

GOOD news for the investor class (just because you have a 401 (k) or a mutual fund does NOT make one a member of the investor class)

What is GOOD news for working people (rising wages) is BAD news fir the investor class

[Southpaw07]

15. Agreed. Layoffs = Profits. n/t

[lib2DaBone]

16. Toxic Paper in the world around $170 Trillion...

I read on one of the financial blogs that there is over $170 Trillion in bad paper out there. We will NEVER be able to throw enough money at the banks to stop the crisis.

Why can't the banks and Hedge funds let this paper go? (besides pure greed) It is never going to be worth its face value and we will never have enough to bail them all out.

How about universal health care and some money for homeowners in trouble. Wouldn't this make more sense? BTW.. nothing wrong with workplace projects that provide jobs. Have the Republicans looked at the shape of our cities? Plenty of clean up and maintenance to keep millions busy for years.