It would be amusing if it weren’t so serious. We went off for lunch (Noon PDT) with the Dow down a couple of percent. By the time we returned, there has been a stunning comeback.
Stocks Stage Stunning Comeback
Wall Street Manages Late Turnaround
Thursday August 16, 4:09 pm ET
Wall Street Pulls Off Late Turnaround to End Mixed, but Uncertainty and Jitters Remain
Wall Street pulled off a dramatic late-session turnaround to close mixed Thursday after bargain hunters lured by weeks of massive declines came back to the stock market. The Dow Jones industrials, down more than 340 points in afternoon trading, ended the day with a loss of just 13.
What do I know? Not enough, that’s for sure. But this doesn’t seem natural. Not the free market economy we learned about in Econ 101. There is definitely as sense that regular folks are wondering WTF is going on here. Who are these buyers? Why on earth would you want to own Google or RIMM at those prices?
And the financial services companies – I thought they were all greedy, self-serving and largely responsible for the worst of this credit mess. Why are their stocks shooting up? What are they up to NOW? How much more damage will be done and to whom before we find that out?
SO says tomorrow is options expiration date, so that could have something to do with is. You think?
BTW – there was also an article about 240 employees at Bear Stearns getting their pink slips yesterday. I guess it was that or cut into the record bonuses paid to the higher-ups – so tell me again about this rosy future in the financial sector.