Markets Soar, but New Rules Upset Traders

[groovedaddy]

After a week of escalating panic in the markets, stocks soared for the second consecutive day on Friday, and many investors rejoiced. But below the surface, a new sense of turmoil set in. When Washington changed the rules of Wall Street, winners were turned into losers and losers were turned into winners, and both camps were left fearful about what would come next.

In a day of chaotic trading, the currents in the financial world changed course on Friday morning after the Bush administration moved to prop up faltering financial institutions.

Stocks that had been beaten down soared. Treasuries and gold, where investors had sought safety in recent days, plunged. Junk bonds shot up.

“Clients and advisers are almost giddy,” said Sallie L. Krawcheck, the head of Citigroup’s Global Wealth Management division. “It’s a sense of massive relief. Everyone feels like they looked over the edge and saw the abyss, and have been pulled back.”

http://www.nytimes.com/2008/09/20/business/worldbusiness/20markets.html?th&emc=th

[madmom]

1. Are we supposed to feel sorry for these people??

[bemildred]

3. They don't like being the screwees.

All that short covering doesn't seem to be doing the job today. US Markets are down.

[boomerbust]

2. It was a circle jerk on CNBC

On Friday. Not so much today.