The market likes certainty. The Big 3 were told to come back with a new plan, leaving the bailout question hanging for two weeks. When Henry Paulson changed direction and announced he would not spend more of the TARP money until January, the market turned negative and went south. That drove the market to new lows.
One client told me she is now addicted to turning on the TV at 12:30 daily and watching the market for the last 30 minutes. "It's like watching a building fire- horrible and irresistible to view. " Today, the fires were extinguished.
President Elect Obama announced Hilary Clinton as the new secretary of state (third woman in a row) and Tim Geithner as the new Treasury secretary. Ah, finally we see some decisive action! The market likes an action plan, a road to success or a least a path out of the destruction. The market rebounded 494 points on the Dow in the last hour. Less talk, more action!
Sandy