U.S. stocks rally on global moves
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) — U.S. stocks rallied Wednesday after the Federal Reserve and five other central banks together moved to ease the flow of funds to banks hit by Europe’s debt crisis, and China cut the level of cash that banks have to set aside as reserves.
“The coordinated action by the global central banks is welcome news. [It] appeared to be a surprise jolt designed to lift investor confidence in euro-zone financial institutions as well as provide much needed liquidity to banks feeling a liquidity squeeze,” Fred Dickson, chief investment strategist at Davidson Cos., wrote in emailed commentary.
NOW, many analysts will wonder why another massive bailout for the banks is good for the markets. Think of it this way: The bailout money is Iced Tea. The banks are the world's financial bladder. The markets are the toilet of the financial system. Where else is all that Iced Tea going to go?
Now, you can stock up on Iced Tea if you want. Me, I'm buying gold.