Main Stream Media is speaking with a unified voice about the Bail-out package. But a true analysis of the market behavior shows the MSM is telling half-truths. The market did NOT drop 770 points on news of the negative house vote and the market is dropping today in response to the senate vote in favor of it. See chart of the Dow's performance.
On Friday the Sept 26 the Dow closed at 11143 after rising when an agreement on the bail out was officially in doubt. An agreement was announced over the week end. Then Asian and European markets reacted poorly to the news, dropping value. Allthough the Main Stream Media official story is that the Dow dropped 770 points after the vote, this is not congruent with what the Dow actually did – and should be apparent to anyone who looks at the various days' trading numbers. See DJIA index site and choose five day view. A graph is provided. Note the Dow dropped immediately upon opening with the news an agreement was made. All the pundits were saying an agreement had been reached (check archives of any news source for lat Monday morning). The Dow dropped immediately and was down to 10861 (from 11143) by 11:30 am. That is almost 300 points. The Dow actually dropped only 485 points after the vote... not 770 points as the story is being told.
The question about whether the markets 'liked' the bail-out idea or not was answered the next day: stocks rallied and then stabilized. Then this morning (Thursday) the senate votes for a more expensive plan, and stocks tumble. As I write this, they are down 3%.
This bail out is questioned by many strong economists and should not be rushed through under threat of "dire consequences" and "depression-like" economic collapse. There are other options.
And most importantly – Samza says the MSM party line about what the stock market is doing in response to the bail out votes should be compared to the actual performance. Question Authority.
When you look at the Dow's Performance -- keep in mind that the House gave the surprise no vote at about 1 pm on Monday -- please note the market had clearly dropped early Monday morning when the agreement was "in the bag". Also note the reaction this morning (Thursday) after two days of what can only be desribed as a rally --and stabilty. When the senate passed the big bail out this morning-- the market dropped.
My graphic can't be posted on Kos as it is my own (see rules), so you will have to look here. Be saure and view the five day performance.
Dow Jones Average for the week
What do you think? comments most welcome.