So far, nothing has been able to kill this current market rebound and yesterday was no exception. Despite some leakage about tomorrow’s results of the stress tests, the major indexes moved higher with the Dow closing above the 8,500 level.
By the time you read this on Thursday, you will most likely know if the stress test results will be fueling this rally or bringing it to a screeching halt—or anything in between.
Hat tip goes to Dr. Housing Bubble this week, for the following story on the Pecora hearings and Bill Moyers’ interview:
Mr. Pecora had an uncanny ability to put together complicated Wall Street jargon into a tangible and understandable argument. Not only did he have this ability, but he understood what the public would be furious about. We need to remember that at this time, it had already been over 3 years since the Crash of 1929.
If we want to put a date on our current crash, we can look at August of 2007. If that is the start date, we are not even two years into this crash which is shocking to even think about. So the public in 1933 had already had enough and was on the verge of populist anger. The country ousted Herbert Hoover from office and brought in Franklin D. Roosevelt. Roosevelt being savvy allowed Pecora more time to investigate the shenanigans of Wall Street. So this was a bi-partisan fight.
Bill Moyers has an excellent talk which came out last week regarding the Pecora hearings:
http://www.pbs.org/moyers/journal/04242009/watch.html