Dow futures down: what do they know that we don't?

[louis c]

I would expect that the futures market would be soaring, considering a 2 trillion dollar infusion to the market. Is somebody balking?

As of 8:50 pm, the futures is down 132.

http://money.cnn.com/data/premarket/

[dkf]

1. Are you so sure the infusion is going to happen?

[still_one]

2. Last I heard was that Congress wasn't not willing to write a blank check to these bastards

[louis c]

4. Did you purposely use a double negative?

[still_one]

12. No, but now that I think about it, unfortunately it might end up prophetic /nt

[angstlessk]

3. they are trying to put pressure on the Democrats to bail out Wall St

and leave Main St to use the ole bootstraps wall street has confiscated!

[Purveyor]

8. I can see the headlines tomorrow afternoon. Market plunges 500 pts as DEM's stonewall

Wall Street rescue package.

I think it is a given and nothing short of corporate 'blackmail'...

[annabanana]

5. They know they might be getting a little "push-back" on their

grand scheme.

[Zenlitened]

6. Friday's buzz was pretty much killed when people saw...

... how little thought Paulson had put into his grand "rescue" proposal.

They wanted so desperately to believe that he had an intelligent, well-reasoned and carefully honed plan ready to deploy if and when the time came.

Now they realize he did his homework on the bus on the way to school.

[louis c]

14. I like that. clever

[flowomo]

7. isn't that commodities.... a separate game?

n/t

[louis c]

11. No, it's equities. It's the Dow 30 industrials (GE, IBM, GM etc.)

[Wiley50]

9. This:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4052893&mesg_id=4052893

Expect It: The market will tank and the media will scream tomorrrow and every day until they get

their bailout.

I don't care. I can ignore it.

All I have is SSI and Medicaid and if they get their bailout
they will then say we can't afford SSI, Medicaid, Medicare
anymore. And the damn foolish public will believe it.

I will not trade helping the poor get the basics of survival
for bailing out the very crooks who caused this mess.

I hope we will ALL stay STRONG.

DON'T PANIC!

Don't let them stampede us.

[nadinbrzezinski]

16. Why we need to take to the streets and email and call

:-)

[whistle]

10. The smart money knows the financial system is bankrupt and the paper that Paulson

...wants to saddle the taxpayers with is completely worthless. Two trillion dollars would only delay the inevitable and twenty trillion would fall way short. Put the whole system into bankruptcy protection and start over with the FDR plan

[coalition_unwilling]

20. It's too late for the "FDR plan" (whatever that

means). Time for the Karl Marx plan: nationalize Finance, Defense, Energy, and Healthcare . . . NOW!

[nadinbrzezinski]

13. Right now the dems are talking accountability, good for them

and chicago school may not fully, or even partially go through

[Subdivisions]

15. I looked earlier and it was down -118. So, getting worse. n/t

[Junkdrawer]

17. And the Dow will stay down until you hand over the dough...

[Warpy]

18. They know that Congressmen on both sides of the aisle

are not exactly thrilled about a blank check with no strings attached being given to Wall Street.

They know that both sides of the aisle want strings attached and that a petulant Stupid has threatened to veto anything but a clean bill, ie a blank check with no strings attached to the thieves that got us into this fix in the first place.

They know that without a huge infusion of taxpayer cash to shore up their balance sheets, a third of them will be gone by election day.

[donco6]

21. What Warpy said. n/t

[johnnyrocket]

19. Market knows the people aren't going to put up with this bogus bailout.

[oioioi]

22. maybe a dumb question but wasn't Friday just a "short squeeze"?

All the hype about the market's "positive reaction to the bailout" seems to be ignoring the fact that banning short sales forces a gazillion shares to be bought at any price to cover short positions. I don't know the details of the ban, but the articles I've read seem to suggest that the action to ban shorting 800 bank stocks literally forced the short shares to be purchased on Friday - this seems insane, but if that's what happened then prices of the affected equities were bound to go up.

Once the outstanding shorts are closed, new buyers will need to be found to keep equity prices up. For the life of me I cannot fathom how anyone realistically expects US debt nationalization to be positive for the equities market.