Why is the market going up?

Quote from Brandonf:

Don't worry, Wall and Broad need not lose a cent, Main will take it on the chin for em!
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.....and that my friend is the quote of the week, Congrats.......
 
Quote from samuelg:

yes i know that...but why are people buying when there is so much negative news.
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News means nothing. The price reaction to news is key.
 
Quote from Brandonf:

Coz thats how markets have worked for as long as there has been markets. Markets top when the news is the best and they bottom when its at the worst. At this point we have the Fed bailing out all the idiots who took on the subprime dirt that we are all worried about, so wall street is throwing a party. Don't worry, Wall and Broad need not lose a cent, Main will take it on the chin for em!
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I want to explain what I mean by this point, that they are taking on the dirt and Mainstreet is going to bail out the greedy bastards again. Traditionally the will only take US backed securities as collatoral from a bank when they give money, that means Treasuries, Fannie Mae, Freddie Mac. They would not take crap backed by Sub Prime Loans, but over the last few days that they have provided the $35billion into the market, they have not taken in Federal paper because there is a flight to quality and high demand for that right now, instead they are letting the greedy pigs use their worthless Sub Prime Backed notes as collatoral on the loans. So, WE (that means the taxpayer) will take it on the chin again so they can buy $10 million 2000sq foot apartments "In the City". Great game indeed.

Brandon
 
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