I’m not taking that as a vote of confidence in the
Wall Street Bailout Financial Market Rescue Bill signed a week ago.
More on the Stock Market last week
This “legendary investor” on CNBC says, “The way to solve this problem is to let people go bankrupt.”
Don’t miss the video, “All of this pumping of money into the system is not going to save it. You see what the market is saying… The market hates it.”
I bet some on Wall Street are worried that once the credit freeze is over and mortgage-based assets are priced more or less correctly that we’ll all find out that a lot of companies are, in fact, insolvent.
If after passing a $700 billion rescue package, the market falls 20%, you have a big problem. You could easily interpret that to mean the market is saying the $700 billion rescue package made things worse, not better.