(Image Courtesy of Bloomberg)The big news of the day is that the stock market began a rebound, before starting to fall again near the close of the markets. The DOW went up to over 200 points, but ended the day 127 points down.
I think a big portion of todays rally has to do with the Warren Buffett's Op-Ed in the New York Times. If you have not read it, its definitely worth taking a look at. Warren Buffett, one of the worlds most respected investors, is currently buying US equities as part of his private portfolio. As he says:"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful." He goes on by quoting Wayne Gretzky:"I skate to where the puck is going to be, not to where it has been." Pay attention, he is one of the major 'market-makers' of the global economy and it would appear that people liked what The Warren had to say, as equities began the day on an upward trend.
In other news, Nikolas Sarkozy and European Commission President Jose Manuel Barrosois are due to meet US president Bush for talks about a potential summit to 'reform the financial system.' Reuters has a very good article which addresses this issue and contrasts it to some of Karl Marx's theories. In particular, the author mentions that one of the several steps towards communism is government control of capital. Keep in mind, in his book the Communist Manifesto, Marx advocated a natural progression towards a communist society, not one achieved through revolution (as has been the case with each and every communist regime in history).
Meanwhile, W. has called on Americans to "to trust in the government's series of interventions to fight the crisis in the banking system." That's a laugh. With his and the US governments track-record of spectacular achievements, its no wonder the markets seem like they are suffering from schizophrenia...
Readings:
NY Times - Buy American, I am
(This is Warren Buffets Op-Ed, definitely worth a read)
Reuters - US and France to Meet on Financial Crisis
I think a big portion of todays rally has to do with the Warren Buffett's Op-Ed in the New York Times. If you have not read it, its definitely worth taking a look at. Warren Buffett, one of the worlds most respected investors, is currently buying US equities as part of his private portfolio. As he says:"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful." He goes on by quoting Wayne Gretzky:"I skate to where the puck is going to be, not to where it has been." Pay attention, he is one of the major 'market-makers' of the global economy and it would appear that people liked what The Warren had to say, as equities began the day on an upward trend.
In other news, Nikolas Sarkozy and European Commission President Jose Manuel Barrosois are due to meet US president Bush for talks about a potential summit to 'reform the financial system.' Reuters has a very good article which addresses this issue and contrasts it to some of Karl Marx's theories. In particular, the author mentions that one of the several steps towards communism is government control of capital. Keep in mind, in his book the Communist Manifesto, Marx advocated a natural progression towards a communist society, not one achieved through revolution (as has been the case with each and every communist regime in history).
Meanwhile, W. has called on Americans to "to trust in the government's series of interventions to fight the crisis in the banking system." That's a laugh. With his and the US governments track-record of spectacular achievements, its no wonder the markets seem like they are suffering from schizophrenia...
Readings:
NY Times - Buy American, I am
(This is Warren Buffets Op-Ed, definitely worth a read)
Reuters - US and France to Meet on Financial Crisis
Reuters - Karl Marx and the World Financial Crisis
(Fantastic article, definitely worth reading)
International Herald Tribune - Bush Says US Bailout Package Will Take Time
BBC - Bush Urges Patience Over Economy
(This article includes a video of Bush pleading for patience.)
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