SEARCH BLOG: ECONOMY
From the NY Times:
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.
...“Some of my clients are literally closing their books and going on their vacation for two weeks — they can’t operate in this environment,” said Meredith A. Whitney, a financial services analyst. “You pack up and come back and play the game when you know what the rules are.”
One hedge fund manager, who declined to be named, likened the changes to “turning a football game into badminton.”
One has to wonder if the complaining is analogous to football players being whistled for a foul. They see how far they can stretch the rules until it becomes obvious there is abuse, and then they say, "Who, me?"
But unlike football where the team is penalized, in this case, it is the spectators that end up paying the real consequences. It's like giving a pay raise to guys who cheat the most... and the paying customers get their ticket prices increased... in April.