Guest Post: Test Your Knowledge Of The "Infamous" Columbus Day Rally
Submited by Tony Pallotta of Macrostory.com
Test Your Knowledge Of The "infamous" Columbus Day Rally
Can you guess the year? Some notable quotes, announcements of government "fixes" and an SPX chart are provided for your assistance.
Some "Infamous" Headlines
"The surge came as governments and central banks around the world mounted an aggressive, coordinated campaign to unlock the global flow of credit, an effort that investors said they had been waiting for."
"He mentioned that the last time we had a "rally this big" was in March of 1933. Karen Finerman said the rally was "extraordinary to the upside,"
“The market clearly was getting priced for an Armageddon, a depression, for the end of Western civilization as we know it,” said Edward Yardeni, the investment strategist. “A lot of people realized these were extraordinarily good prices to buy stocks.”
"There will certainly be a lot of retrenchment in the real economy, but the stock market tends to look ahead," Mark Mobius, lead portfolio manager at Templeton Asset Management, said on CNBC's "Squawk Box" Monday morning. "...You will probably see a few more declines, but we're beginning to see the bottom of this and so the opportunities are quite interesting, quite attractive."
An SPX Chart
2008! Yes, the same problems, the same "fixes," the same pundits declaring birth of the bull. This is all after Lehman failed, AIG was "rescued", Fannie and Freddie were "rescued" and of course let us not forget the passing of TARP, the plan that would save us all from self destruction.
But of course this time is different. Europe has studied the mistakes made by US officials and vowed to not repeat. A recapitalization of the banks will calm markets and restore confidence. Seventeen countries can rapidly create, agree and vote on a plan within hours if needed to stem the contagion.