funny watching the market increase on this news, yea government take over is positive for the market.. not
Or is it a flight from bonds to stocks because bonds have lost their appeal? The main point of bonds is that they are senior, secured debt. Now that obama has declared that part of fundamental business law to be ignorable, there's no point in buying bonds.
BTW, I can no longer imagine an outcome in which GM continues to exist. They blew through $20B in our tax dollars in two months. They have another $30B in our tax dollars, but their net worth is about negative $90B. With bankruptcy calling their survival into question, college educated liberals buying 70% of their cars from Europe and most of the rest from Japan, and conservatives offended at the fascism of a nationalized company, I don't see much future demand for their product. As for future voluntary investments to keep them afloat, no sane person would loan them money via corporate bonds after they chose to default for political reasons, and no sane person would buy stock in a company with such a severe negative net worth problem. Once the fascist in our White House realizes that we won't tolerate his stunts any more, they're dead. [Good!!!]
That market increased because GM and Citibank were yanked off the market today, thereby, not dragging down the average.
The “we love socialism” index has made little sense for * while now.