Wall Street extends big rally to 2nd session (our massive challenge,checkmate???)

yahoo news ^ | Dec 8,2008 | By JOE BEL BRUNO and TIM PARADIS, AP Business Writer Joe Bel Bruno And Tim Paradis, Ap Business Writ

[sickoflibs]

… NEW YORK – A stock market gaining in confidence shot higher for a second straight session Monday as investors bet that President-elect Barack Obama's plans to increase infrastructure spending will help lift the economy back to health. The major market indexes jumped more than 3 percent, and the Dow Jones industrials' nearly 300 point advance gave the blue chips their highest close in a month.

Obama's plan calls for the largest U.S. public works spending program since the creation of the interstate highway system a half-century ago. That could bolster the economy by putting thousands of people to work building schools and other construction projects.

His weekend announcement gave a lift to a range of companies, from machinery makers to materials producers. Alcoa Inc., the world's third-largest aluminum producer, surged 18 percent on the news; while heavy-equipment maker Caterpillar Inc. jumped 11 percent.

Investors also grew more confident as the government neared a deal to dole out billions to America's three biggest automakers. The White House said Monday that it was "very likely" to strike an agreement with Congress on funneling money to General Motors Corp., Chrysler LLC and Ford Motor Co. The package is expected to total about $15 billion.

[sickoflibs]

I don't like the looks of this. Will Pelosi Reid ram a bill like the bailout, with no debate? What can republicans do??

[SMCC1]

What happens if the market continues to rally and recovers considerably before O’s sworn in. Does Obama still push through his New Deal 2.0?

[doublecansiter]

Hitler did the same thing, but had his people building
tanks stukas and submarines.

Mike

[boxer21]

Fear not, the end has not yet come; give it another five years and in the meantime, you will see ups and downs just like the period between 1929 and 1933.

[Old_Grouch]

Boxer 21 wrote:
“Fear not, the end has not yet come; give it another five years and in the meantime, you will see ups and downs just like the period between 1929 and 1933.”

Boxer21, I don’t think this is a pendulum. The country is FAR more socialist now than it was in the 1930’s. The pendulum never swings evenly back. I look at it more like a line graph — a jaggedy line, with ups and downs, but with an overall downward trend line away from liberty and towards collectivism. And I do fear.

[boxer21]

There is no question you may correct in your assessment; I merely wanted to make the point that a few days of rises in the stock market do not necessarily spell an end to the downward spiral.

[JudgemAll]

This is not market reaction but marketism reaction to “news”.

Idiots reinvest in Walstreet. The smart ones are already out. They use Obama’s pronouncements as a marketing excuse, but the real value is not there. It’s fake money and this bubble will burst.

[CottonBall]

Fear not, the end has not yet come; give it another five years and in the meantime, you will see ups and downs just like the period between 1929 and 1933.

Do you think we will have that long before the real crash?

[blam]

" It’s fake money and this bubble will burst."

So, Great Depression II is still on?

[yawningotter]

I suspect that much of this rally has more to do with bargain hunters picking up stocks that were sky high a few weeks ago than anything having to do with 0bama. Buying right now might be a good investment if you invest in solid companies that can weather just about anything, provided you are willing to go VERY long. However, I wonder if there will be another big selloff at the end of the year as savvy investors take their profits from some of those suddenly undervalued stocks before the new year brings in 0bama’s higher capital gains and corporate taxes.

[NutCrackerBoy]

It’s funny how the MSM rediscovered the deceit of correlating market spikes with news AFTER the greatest post-election drop in history right here in good old 2008.

[Ancesthntr]

We’re not merely more socialist, we’re far, far more in debt. We’re more in debt now (before the bailout money and any stimulus packages are counted) than at the bottom of the Depression - and GNP isn’t anywhere near as bad now as then (at the bottom). We’re screwed. This stimulus stuff is only adding gasoline to the fire - the crash will be delayed a bit, perhaps, but will be worse.

Take a look here: http://market-ticker.org/archives/676-To-Obamas-Transition-Team.html for the history and solutions - none of which will be taken.

[SmokingJoe]

” President-elect Barack Obama’s plans to increase infrastructure spending will help lift the economy back to health”

It won't.
The Federal Government is in hock to the eyeballs in debt, vast amounts of that debt to the Chinese. It's just not sustianable.
The New Deal didn't have to borrow huge sums from China to build roads and bridges.
Comrade Obama spending vast sums of money we don't have(the don't worry be happy Obama economy), from our biggest and most powerful enemy country, is the sure road to disaster.
That is exactly how we got into this mess in the first place.

[SmokingJoe]

Agree totally with you.

[Kackikat]

No one really knows, but probably two years at least, until the truth about all this spending becomes reality.

[Western Phil]

There may be a significant market recovery between now and the first 100 days. The reason being that Obama doesn't really seem to be so bad. I predict that the bottom will drop out of the market once the 100 day program becomes obvious.

[Oatka]

This is not market reaction but marketism reaction to “news”.
Idiots reinvest in Walstreet. The smart ones are already out. They use Obama’s pronouncements as a marketing excuse, but the real value is not there. It’s fake money and this bubble will burst.

I agree. Methinks this is a bear trap. Check out the volume spikes in the last hour of each day this past week, especially Friday with that gap up, which is usually filled in in the following days. Can you spell MAN-IP-U-LAY-SHUN? The volume ia anemic the rest of the time and the sheep going in now are headed for a slaughter.

[Sarajevo]

We’ll see if there is a significant down spike on Thursday.

[Scotswife]

I thought americans didn’t do this type of work anymore?

Are the illegals going to get all these jobs?

[dr_who]

It won’t recover, and Obama will push for his pork bill either way.