Wednesday, September 24, 2008
Bailout part 2
Excuse me for being cynical, but don't the capital gains tax reductions expire this year? Could it be that immediate action is required on a bailout plan so that stock prices will rise for a sufficiently long enough period so that wise investors can get their money out with some gains. Wells Fargo and Bank of America shares were through the roof on Friday when the doom and gloom in the rest of the market was apparent. By Monday morning's the announcement of a potential bailout plan, they had lost almost $5 per share because there was no reason for investors to make the move to a more solvent and steady bank. Now the market is mostly waiting for news. A bailout would be good for almost every stock except the responsible ones.
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