[Cyrus]

How do you think the markets will react tomorrow? With all of this bailout contreversey?

[Tyler_JC]

I predict a rally which will quickly fizzle once they realize the government has to wipe out shareholder equity in order to make this program work.

The Feds bought 80% of AIG for $85 billion. The company was "saved" but the shareholders just experienced a massive dilution of their investment.

They effectly quadrupled the number of shares in print. That has one hell of an effect on earnings per share. I will be shocked if they return to their August level of $20 a share any time soon.

[Niagara]

I expect a huge rally initially.

To be followed by the mother of all crashes, right on schedule.

As per Ben & Hank's Playbook
(skip ahead to 2:45)

[Novus]

I predict a week long rally followed by a slow fizzling. In about 3 or 4 weeks it will dawn on the markets and the world that the bailout has failed. Then you will see the mother of all stock market crashes along with a dollar meltdown.

[Bas]

if there's no more bad news on the banking and insurance front this week, I expect the markets to hover around the 11,000 mark without any big rallies or slumps.

[smallpoxgirl]

Then on Friday, when the short selling ban expires, everything will go to hell again.

[killJOY]

eye hav know phuking eye de a.

[Triffin]

With a "methane burp" that would
make Cid_Yama proud !!

Triff ..

[TheDude]

They will themselves with fear. Bunch of frickin' amateurs.



That looks like a helluva party, SPG.



But alas, there's the day after...

[DaleFromCalgary]

If I could predict the future, I wouldn't have to work for a living. I'd go down to the race track once a week and put $100 on the trifecta.

This is why I don't buy publicly-listed stocks. My investments are in small start-up junior petes with private equity. Share value = book value, book value = reserves plus physical assets, and none of this roller-coaster nonsense.

[Revi]

I'll bet the market goes up until around the end of the week, then starts to tank again next week. The 700 billion may give them something to feed on for a week or two. Then they will be crying for more as the whole thing goes down again.

[charliebrownout]

With all of this bailout contreversey?

I was just about to ask everybody else the same thing...that is to say...I've got NO idea...but I'm definitely watching. My whole family hates the internet right now.

I sit down at the computer and my husband asks, routinely, "So, what sort of bad, evil, world-shattering thing is going to happen to us today?" and "Aren't you being just a little TOO paranoid?" and "Do I need to buy some more tinfoil?"

I think the kicker was a couple of nights ago when he said I was wearing an invisible tinfoil hat to throw off any other tinfoil hatters who might really be plants from the govt.

[sittinguy]

First injection,, 2weeks

Thinks look slow, 2nd injection, 1 month

Got 200b$ left

Third injection, 3 months.

Obama, sends out more money.

2 months.

Then something weird happens,,, crash

we're screwed..

prep now

[efarmer]

The toughest job falls to Jack. He has to climb the beanstalk
again and break it to the giant that the note on the castle
in the air has gone sideways and he will have to put up all
his imaginary money or will not only lose the castle, but the
cloud it is on as well. Once he gets back down, if he gets
back down, he has to try to calm his mother, and then
hustle into town to see if his lawyer thinks he can
prevail on the guy who scammed him on the Magic Beans
for cow contract and hope the cow is still around and in
one piece. You and I both know that the cow is in many
little pieces, each one in a separate CDO (cow debt obligation)
and spread out between many players in many nations,
some of whom can not even be told they own a piece of cow
and in fact are prohibited by law from doing so.
I say Jack waits for JP Morgan or Citigroup to pull some or
all of the cow back in as part of working with the feds on the bailout, and then to talk himself back into a job, since he has actually seen the cow intact, and has a good idea on how
he might be put back together.

You and I have got it easy pal.

Jack is going to think he's is living in a friggin' fairy tale,
then again, so are the House Republicans.

[the48thronin]

I think the kicker was a couple of nights ago when he said I was wearing an invisible tinfoil hat to throw off any other tinfoil hatters who might really be plants from the govt.


wow what a sig line

let's see.........

I'm wearing my invisible tin foil hat to confuse those tin foil hat wearers who are really plants from the government sent to find everyone wearing a tin foil hat and put them on the A list.

I wouldn't want to be placed on the A list after all!

[the48thronin]

if there's no more bad news on the banking and insurance front this week, I expect the markets to hover around the 11,000 mark without any big rallies or slumps.

as to how the markets will react to this rescue news....

[Buggy]

Let's see. We sent 400 billion dollars this year to foreign countries who hate us to buy their oil. The Fed is going to float Wall Street a 700 billion dollar loan to swallow all their toxic waste. Next year we will need 600 billion dollars to keep us gulping up the black gold. So we should need a 9.5 billion dollar bail out same time next year. I should think the markets will be coming up roses next week. A year from next week? Grap your ankles.

[cube]

if there's no more bad news on the banking and insurance front this week, I expect the markets to hover around the 11,000 mark without any big rallies or slumps.

My gut tells me the dow jones will drop to 10,000 within 30 days.

[drgoodword]

Monday (today) will likely see an initial spike upwards with a drop and then moderate upward movement, with the DJ ending the day in positive territory.

Tuesday will end down.

Wednesday will be affected by the ISM report. Friday's employment report will affect the end-of-week trading.

Note that on Friday the Q2 GDP was revised down to 2.8% from the initial 3.3% estimate. One article I read noted that the revision was expected to be upward.

As of this post, Asian markets are down after early gains, suggesting the bailout agreement has yet to impress.

We're in a bear market where the entire financial system is deteriorating along with the general economy. It's like being in a space invaders game with bad news bomblets dropping at every turn. It's going to be two days down, one day up, right up until the big crash that's coming if not in the remainder of this year, then certainly in 2009.

[idiom]

Now that this bailout is passed, the GDP for this quarter should increase by $700 Billion. Right?