tag:blogger.com,1999:blog-2948538160252327076.post4559191719566995505..comments2023-11-02T15:48:50.381+00:00Comments on UK Bubble UK Economy: A mad rally to end a crazy weekAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2948538160252327076.post-55594609652128549952008-09-20T01:11:00.000+01:002008-09-20T01:11:00.000+01:00I agree with "anonymous #1" - I think the rally in...I agree with "anonymous #1" - I think the rally in financial stocks today was all about short covering - and trading to take advantage of a one-way-bet on the direction of prices.<BR/><BR/>I think the proposed US "solution" is a complete unknown... there are so few details published, it could be anything from free money to guarantee a hyperinflationary collapse of the USA... to a minimal stingy offering to show that the government is trying while commercial banks all either collapse or survive at a far smaller scale on the brink of bankruptcy.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-53089705773483542102008-09-19T23:25:00.000+01:002008-09-19T23:25:00.000+01:00I've long said that the USA had elected two duds i...I've long said that the USA had elected two duds in a row as President, and would pay dearly. I hadn't realised that the payment would be quite so vivid.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-75849376488232103882008-09-19T21:13:00.000+01:002008-09-19T21:13:00.000+01:00This is just a stunt by the government. It’s in n...This is just a stunt by the government. It’s in no way a solution.<BR/>This sort of debt fund should have been created years ago to create the trillions of dollars required. <BR/>Now the US population will be punished for the failings of large companies which is crazy.mikehttps://www.blogger.com/profile/05772374031938763566noreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-76382258915745814132008-09-19T20:21:00.000+01:002008-09-19T20:21:00.000+01:00"Today’s stock market rally was a hysterical endor..."Today’s stock market rally was a hysterical endorsement of an unholy alliance between the public sector and finance. It was an insane rally, .."<BR/><BR/>I am not at all sure that is the case. How about this scenario?<BR/><BR/>Todays rally was the shorts covering their positions, a result of the UK and US short ban. <BR/><BR/>Next week, as you point out the financial fundamentals will not have changed, gradually this will dawn of people holding financials, some of who may have bought in todays rally.<BR/><BR/>Now, as the stocks start to sell off. There will be no short covering rallies any more, nothing to arrest the market right to the bottom.<BR/><BR/>Brilliant!Anonymousnoreply@blogger.com