Money Morning Archive May 2010

Fill your boots! It's the age of the bail-out. Just as dozy lending to uncreditworthy borrowers was on the verge of bringing down the banking system (again), the world's leaders locked themselves into a room over the weekend, and saved the bankers (again).

Whammo! Is our 'Crash Alert' flag still flying? It is? Great. The Dow got whacked hard last week. It was down a few hundred points. And then, somehow, the computer programs triggered the sell signal from hell. It lost another 500 points in just a few minutes. Then, the computers must have reconsidered. They went into buy mode. All very strange...

Last week, "Fabulous Fab" Tourre was forced to appear before the US Senate. The senators may not have been able to tell a derivative from a hole in the ground, but they knew what the mob wanted - blood. The poor French lamb was bled on Tuesday. Meanwhile, an Englishman wrote to the TIMES, suggesting that media was being distracted from the big story...

How would you describe stock market volatility? Some analysts compare equity returns to a rollercoaster ride. Investors enjoy periods of calm punctuated by mindshattering drops, rapid ascents and perplexing changes in direction.

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