$85 billion for 80%!
Now hire Hank Greenberg back!
Now we have fixed (nationalized) FRE, FNM, and AIG.
LEH? It's now Barclay's .
Merrill Lynch is now taken over by BAC, Goldman Sachs, at 115 and Morgan Stanley under 24 were the panic lows, helped by the shorts driving down the prices.
The corrections in these stocks are just breathtaking! They make their entire corrective move in days!
Wachovia also reversed today, and now the onus is back on the bears. It looks like we have to start getting bullish again for another move up!
When Bernanke left rates alone, and we got an FOMC statement still worried about inflation, the bears had the chance to push things down.
Instead the bulls pushed back.
This action in the financials reminded me of the FRE and FNM bailout after the close a couple weeks back. That Friday, there was strength in the financials all day.
We had the same action today.
It almost makes you think that we'll see surprise short selling restrictions on the market tomorrow.
In any event, Sandisk got a bid after the close, and Morgan Stanley had good earnings. AIG is bailed out, and we have a recipe for another government induced rally during the end of option expiration.
Apple Computer was removed from the "conviction" buy list from Goldman today. With the stock under 140, that was good enough for me. I picked up the October calls on this number.
Tonight the bears will toss in their sleep and swear at the government.
Paulson swore that the government wasn't going to get involved in AIG. Then they throw in $85 billion!
Boy is that rich!