Geithner plan: Public-private funds could buy up to $1 trillion in troubled loans & SECS.
Aaron Lee Smith, MD of Superfund Financial says this will bring about a short-term upswing in the equity market. The reason? The government has spent 13 trillion dollars on bailout packages compared to the total value of the US equity market which is only 9.1 trillions!
They also issued 2.5 trillion dollars in new securities and only buying back 300 billions so is that really good news?
It's really is short term gain but long term pain. This is "the beginning of an end" for the US dollars.
Charts show the formation of a new Expanding Trangle, which means we are heading back to new lows. We have potential to take the dow back to low 6000 range and S&P to 650. Stocks are over bought and very expensive relative to the poor earnings and growth going forward. Do not look at historic figures as those days are gone forever.
taineasy 2 years ago