Monday, November 24, 2008

is it Citigroup or Obama that is saving the stock market today?

after a really bad week of drops the markets started to go up on Friday afternoon, closing the market up about 494 points (during a week where we mostly saw drops)

as I write this the market is up 209 points.

now I am wondering what is causing this good news.

a lot of people are thinking that some of it is do to news recently being made by Obama. the market went up after it was leaked that Obama will pick Timothy Geithner to be his Treasury Secretary.

and over the week Obama released a web video where he talked about his economic plan.

and this after noon he gave a press conference.

are stockbrokers feeling good about the choices Obama is making causing the market to go up? or is there something else.

The market did go up to day but it actually started to dip a little when Obama gave his press conference.

and in fact Obama wasn't the only one making financial news this weekend. there was a G20 meeting over the weekend and the government has announced plans to buy $20 billion in Citigroup preferred stock and back the banks assets by up to $309 billion.

if you look at many financial news site they look at the citigroup news to explain the jump in the market.

But I think it's a bit odd to say that people are buying more stock because of the news of the government pumping more cash into citigroup giving that was hardly the response when they did that before with citi and the other finical intuitions.

now maybe people are just getting us to it in the last few month and are start seeing this as an actually good thing.

or maybe these sites/papers are wrong in saying that is what is causing the bump in the stock market.

now the G 20 meeting have made people feel good enough to invest a little. 20 of the world's countries go together to try and work out away to stop the world market form keeping going into the tank.

I think this may be a real factor in the market up shot.

but at the same time I can see Obama also being a bit of a factor and manly for the same reason. the G 20 and Obama pretty much focused on what we will need to be doing and stating that we wont see the out come sometime in the near future.

1 comment:

Mberenis said...

Awesome blog! Did you hear the good news!?!?!? This citigroup bailout is opening new avenues for the citizen to be bailed out.

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