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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

World Markets, Futures Up in Anticipation of Geithner Plan

The White House has so far gotten what it has wanted: A worldwide markets surge before the long-anticipated bank rescue plan of Treasury Secretary Tim Geithner scheduled for rollout this morning.

You can read the details of the plan here.

Markets were up across Europe and in Asia, as they applauded Geithner's plan to take nearly $1 trillion in toxic assets off the books of U.S. banks.

The U.S. futures markets -- an indicator of how the markets will trade once they open -- were up vigorously this morning.

Dow futures are up about 150 points so far, or more than 2 percent.

S&P 500 and Nasdaq futures are both up vigorously, as well.

-- Frank Ahrens
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By Frank Ahrens  |  March 23, 2009; 8:53 AM ET
Categories:  The Ticker  | Tags: Tim Geithner, bailout, toxic assets  
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Of course the world banks are going to love this because it will bail them out of the money they spent by buying into our market, which means they will not have to use their own money to bail themselves out.
The bad news is that this is going to suck all of this money away from the USA.
It may stimulate the markets for a day or two, but it does not resolve the underlying problem with the global market. That is, consumers in the USA are not buying products any more because they are too expensive and there is no money. If we don't buy all the cheap crap from China, it hurts their economy and the world economy.
This is a global economy. We are now a global market. This will not change. There is going to be a new world order in marketing and China & India and other countries that have the cheapest labor are going to rule.
But the USA will eventually catch up by progressively lowering its standard of living and becoming a third-world country.
The best solution for the USA is to give stimulus money directly to the consumer, rather than the banks. The money must be spent withing three months. All of it will go to the local banks, anyway; Who will then loan it back to us for the highest interest possible with the worst terms possible.
Giving money to the banks is like throwing it directly into the world market. The major banking industry is now global.

Posted by: maphound | March 23, 2009 9:54 AM | Report abuse

Hang in there, maphound. We will make it.
We are all in the same mess and a minor adjustment to the regulations, world wide should satisfy all, especially us, the people who are always footing the bill of the high and mighty.

Posted by: MOmom1 | March 23, 2009 10:20 AM | Report abuse

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