The Geithner plan to deal with the bank’s toxic assets won the market over and share prices headed in the right direction. And while the plan will get debated over the next few days, the general thrust excited the market because it gave more certainty.
Since the March lows on the stock market, the S&P 500 has risen around 20% and there have been five 90% days where 90% of market action was buying rather than selling.
Oil, a good indicator of confidence, spiked to $US53 a barrel and the Oz dollar is at 70.26 US cents.
By the way, I interviewed four of the country’s most well known economists last week and they thought unemployment would peak next year at: 7.2%, 6.2%, 6.7% and 7.5%! For this year they tipped 5.7%, 5.9%, 5.8% and 6.6%! This is the stuff that a mild recession is made of. You wouldn’t guess this reading the newspapers.
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