Thursday, December 6, 2007

Perverse Incentives

Is it just me, or does it seem really stupid that the stock market actually goes up when news of record foreclosures hits Wall Street. Yes I realize they are doing it on the hope that a rate cut is more likely....but it still seems pretty ironic and short sighted.

7 comments:

big n rich said...

All I can say is this plan is a total joke. Go take a look over at housing panic to see all the red tape assocaiated with the plan. The bulls are grasping at any type of news to save the housing crash.I just laugh at how incompetent this administartion is.Scares the hell out of me they have the power to destroy the world with nukes.God help us all.

Paul said...

Amen! I am so angry at what they are attempting to do I am just storming around the house yelling at them on the tv!

Sippn said...

Stock market doesn't care about some stuff.

Losses less than expected.

Rates will be cut.

Fix for subprime mess.

OK jobs report.

big n rich said...

The adp jobs report is a joke.Will be interesting how the govt cooks the books in the morning.Their inflation numbers are just hideous.Surely we need another rally in the market so it will be good.The shorts are getting their heads handed to them once again by this incompetent administration.Can someone normal please run for prseident.Buying time are you available to clean house? I am for hire as your vp.

Gwynster said...

I want to be Chief of Staff >; )

Buying Time said...

BnR - You sweet talker...

Being the planner that I am....I made sure not to take any illicit drugs in high school in case I ever ran for president =)

And Gwyn I would be honored to have you as my chief of staff.

Patient Renter said...

I like how the market went up the other day when the supposedly positive news came out that citi was putting its financial troubles to bed (for now) by giving up a 5% stake in its company, yet at the same time, citi itself dropped! So what was it, good news or bad news?

The stock market is a joke.