what caused the late day JUMP in the stock market?

[Fresh_Start]

last time I looked down 100, end up 300.

[WannaJumpMyScooter]

1. profit takers

sucker rally

[catzies]

11. Yup. Thread over. The correct answer is right here. n/t

[Cleita]

2. Greenspan farted?

I kid.

[Contrary1]

3. McCain placed a call and told them to straighten up. n/t

[ixion]

4. same thing that's been keeping it from tanking: artificial life support

the bergermeisters pumping liquidity in the market so they can continue to make the claim that all is well.

[readmoreoften]

6. Quite obviously. Last night Hang Seng was down 8% then the market shut down and it was up.

That's a lotta liquid.

[mrJJ]

5. RTC ....ROFLMAO

Paulson spewed some crap about forming an RTC... Like allowing the banks to sell their foreclosed homes to the Government; so the banks can clean up their balance sheets. ROFLMAO We'lll own AIG in 24 months if they dont cover their "loan". No way can the Taxpayer afford about 3 trillion in foreclosed homes. UNLESS the government wants to go into the real estate biz.

Paulson doesnt have the Power under the law to form an RTC. I'm selling into the bumps.

Its all smoke and mirrors!

[Fresh_Start]

21. so instead of doing a bailout....we'll let them fail

and then buy them up and then pay other financial companies to take them off our hands?

[Virginia Dare]

7. Last minute infusion of cash again...

I expect we'll see this type of thing until the cash runs out, unless they just print more.

[flamingdem]

13. And our dollars are worth less every time

from what I understand.. Bush is going to do this to prop up the Repukes unti Nov. 4 ...

[ThomWV]

29. Our dollars had dam little value in the first place

[question everything]

8. Creating a repository for banks' bad debt

NEW YORK (AP) -- Stocks are surging with the Dow Jones industrials up more than 300 points following a report that the federal government is considering creation of a repository for banks' bad debt.

CNBC said Treasury Secretary Henry Paulson is considering creation of an entity like the Resolution Trust Corp. that was formed after the failure of savings and loan banks in the 1980s.

The Dow, which had been showing modest moves in the final hour of trading, jumped nearly 330 points to the 10,939 level following the report.

http://biz.yahoo.com/ap/080918/wall_street.html

[kurt_cagle]

16. Oh happy days!

All we need to do now is for Paulson to take over the health care sector and buy up the auto and airline industry and in one fell swoop, George Bush will have accomplished what no liberal president has ever achieved - the complete nationalization of the US economy. Without even trying, Bush has turned the US Communist. What a legacy!!

:sarcasm:

The Russians must be rolling on the floor with laughter about this one.

[Dorian Gray]

9. Henry Paulson

said that they were going to institute regulation against short sellers and hedge funds. People like that news.

Goldman and Morgan Stanley are PISSED off, and they are going to come out swinging. People like that news, too.


http://seekingalpha.com/article/96203-hedge-funds-may-have-gone-too-far?source=yahoo



and



http://biz.yahoo.com/cnbc/080918/26770386.html?.v=1

[DJ13]

10. Lipstick on a pig is the best the GOP can hope for

[flamingdem]

14. They'll be pumping into the election having noticed Obama's bump

dang

[flamingdem]

12. Paulson thinks he is a hero. He announced a new agency to deal with debt

.. that plus the short selling rule is working for the moment .. oh an some 300 billion injected into the markets.

[Subdivisions]

15. Resolution Trust Corporation II rumor. Funny how a rumor can

move billions of dollars around.

RTC II means that taxpayers get to pay the bad debt. Woo-hoo!

[LeftHander]

17. Putnam dumped a huge money market fund

15 billion dollars for institutional investors to beef liquidity..

this will probably be bad.

[On the Road]

18. Volatility is High

Market is deeply oversold. Lots of panic and uncertainty. A lot of speculators out there looking for a daytrading bounce.

The breakdown in the markets was seen by many to be excessive and overdone. The volume looked to some like capitulation, a pattern which triggers a rally.

Tommorrow is triple witching hour, which is often unusually unstable, although it's impossible to predict whether the effect will be up or down.

[Fresh_Start]

19. thanks for the answers

1) RTC redux
2) profit taking
3) preparation for triple witching hour
4) why not

[fascisthunter]

20. up 450.... everything is fixed....

of course, this was after how many billions poored into this market?

[Javaman]

25. what was it 180 billion or 250 billion injection? and all we get is 400 points?

sounds like a really shitty trade off to me.

if that kind of dough only gets us this much, we are in such major deep shit it's terrifying.

I suspect as always, the very brief moment of uphoria of this 400 point jump will vanish in the haze come monday it tanks yet again.

[fascisthunter]

26. That's alot of money for 400 points, isn't it....

so what now?

[Javaman]

27. Pray damn you PRAY!!! LOLOLOL

your guess is as good as mine. LOL

[mudesi]

22. Short covering (nm)

[sinkingfeeling]

23. Rumors of a long-term government bailout. Paulson is proposing some agency to take on bad debt.

They should be tried for treason.

[SweetieD]

24. PPT working overtime, spreading the injection over the day, + the RTC rumors

[TheWatcher]

28. And what needs to be remembered is that Stammerin' Hank's Revelation is STILL JUST A RUMOR

This is the "Magical Rumor" Strategy once again, or as I've become accustomed to calling it, "The Power Of Bullshit."

It's really amazing if you think about it.

There is no plan in place, nothing that has been outlined, no specific details have been laid out.

Only a rumor of the resurrection of the INGENIOUS plan in 1980 that allowed them to "Hide The Meltdown" last time and stick the taxpayers with the Bill.

So basically all this was based on what Wall Street does best.

HOT AIR.

Now, if we remember the last fiasco in 1980. it cost the taxpayer ONLY $500 Million, if I remember correctly. (Someone out there correct me if I am wrong.)

I wonder how much it will cost us THIS time, since this is like comparing a firecracker to a fucking VOLCANO.

[dysfunctional press]

30. we the taxpayers are going to take on their bad debt. exciting news, isn't it?

lucky us.