According to the Rothschild owned AP news Service the credit crisis is over!
According to the Rothschild owned AP news Service the credit crises is over! This minor market instability will never happen again if the American people give the Fed special powers to ensure that nothing like this ever happens again. Made some money and got special rules expanding the feds power. This has been a good quarter for the banksters.
By JOE BEL BRUNO, AP Business Writer
NEW YORK - Wall Street began the second quarter with a big rally Tuesday as investors rushed back into stocks amid optimism that the worst of the credit crisis has passed and that the economy is faring better than expected. The Dow Jones industrials surged more than 300 points. Financial stocks were among the big winners after Lehman Brothers Holdings Inc. and Switzerland's UBS AG issued new stock to help bolster their balance sheets.
With that upbeat news and a fresh quarter ahead of them, investors appear quite willing to make some bets that the worst of the damage from the nation's credit struggles has been felt. Moreover, the moves buttressed the view that financial services companies are taking aggressive action to improve their capital bases and stave off the potential of a collapse similar to Bear Stearns Cos. Analysts believe there must be a recovery in bank and brokerage stocks to lead major stock indexes higher. Some of the biggest financial players had their biggest moves of the year Tuesday — Citigroup Inc. shot up 10 percent, JPMorgan Chase & Co. rose 7 percent, and Lehman surged 11 percent.
"This is a nice way to begin the second quarter," said Todd Leone, managing director of equity trading at Cowen & Co. "All the financials are up big, and there's a sense that things are turning. We definitely have not seen the last of the credit crisis, but we're getting closer." Meanwhile, Wall Street got another boost when the Institute for Supply Management said its March index of national manufacturing activity rose to a reading of 48.6 — indicating a contraction, but a slower one than in February and tamer than many analysts had predicted. Government data on construction spending for February also came in better than expected.
In early afternoon trading, the Dow rose 316.13, or 2.53 percent, to 12,573.02. Broader stock indicators also gained sharply. The Standard & Poor's 500 index rose 33.36, or 2.52 percent, to 1,356.06, and the Nasdaq composite index rose 58.86, or 2.58 percent, to 2,337.96. The advance was in contrast to a lackluster session on Monday, where stocks managed a moderate gain in the final session of a dismal first quarter. Major indexes ended the first three months of 2008 with massive losses, marking the worst period since the third quarter of 2002 when Wall Street was approaching the lowest point of a protracted bear market.
Renewed enthusiasm that the credit crisis might be waning was also felt in the Treasury market, where government securities fell as investors withdrew money to take bets on stocks. The 10-year Treasury note's yield, which moves opposite its price, rose to 3.53 percent from 3.43 percent late Monday. In addition to optimism about the financial sector, Wall Street was relieved to see the feeble dollar regain some strength against the euro. The euro fell to $1.5596 from $1.5785 late Monday in New York. And there was also optimism that commodities prices, which have hit historic highs in recent months, have begun to retreat. Crude was up 25 cents at $101.83 a barrel on the New York Mercantile Exchange after earlier falling below $100. Meanwhile, gold dropped back below $900 an ounce.
The stock rally was underpinned by announcements by UBS and Lehman Brothers that they are boosting capital by issuing new stock. Shares of banks and brokerages hovered near multiyear lows in recent months as investors feared heavy losses from investments tied to subprime mortgages would be overwhelming.
Earlier this month, widespread concerns about Bear Stearns' financial position forced the investment bank to sell itself at a bargain basement price to JPMorgan in a deal engineered by the Federal Reserve — and that stoked fears that others might follow. JPMorgan rose $3.05, or 7.2 percent, to $46.02; while Bear Stearns was up 26 cents, or 2.5 percent, to $10.75 — just above the $10 per share acquisition price. UBS, one of Europe's biggest banks, said it will issue up to $15 billion in new stock and that its chairman, Marcel Ospel, had quit. Investors chose to look past the bank's announcement that it will take a fresh $19 billion write-down due to additional declines in the value of its mortgage assets and other credit instruments, following an $18 billion write-down last year. Shares surged $3.44, or 12.1 percent, to $32.24 in trading on the New York Stock Exchange. Lehman Brothers, dogged by speculation it might reveal losses big enough to cripple the company, on Tuesday raised $4 billion of capital on Tuesday to stymie questions about its financial stability. Lehman rose $3.45, or 9.6 percent, to $41.26.
The Russell 2000 index of smaller companies rose 14.97, or 2.18 percent, to 702.94. Advancing issues outnumbered decliners by about 4 to 1 on the New York Stock Exchange, where volume came to a heavy 750.8 million shares. In overseas trade, Tokyo's Nikkei closed up 1.04 percent. There were gains in Europe too, with London's FTSE rising 2.64 percent, Frankfurt's DAX gaining 2.84 percent and Paris' CAC 40 advancing 3.38 percent.
And if Jack the Ripper had been caught--like the Federal Reserve--and put on the spot, he could say he's learned his lessons from murdering those girls in London's East End.
And that he's sorry that it happened, but that in the future, he'll gut and carve up his next victims with a kinder and more gentler attitude.
Now, it's off to work for Jack... and the federal reserve.
It is really amazing but your description is spot on. The other oberservation is how brazen they have become.
Please, it's Jewry talking. Who believes 'em?
the shill market will not last long.
It's Aprl 1 afterall.
I'm more worried about the April 20 to March 20 window..
YOU FUCKFACE YOU ARE MESSING WITH SOMETHING BEYOND YOUR PEA BRAIN.
YOU KNOW WHAT YOU DID.
I'LL LET THIS ONE GO. NEXT TIME YOU WILL WISH FOR A DIFFERENT LIFE.
..that different life thing sounds interesting though!