A Rocket
22nd February 2008
The markets rocketed higher into the close as news came out that some banks were finalizing a bailout for ABK. The market spent most of the day south of -100 before closing up nearly 100. This could be potentially very good news and makes a lot of sense. If these bond insurers lose their AAA ratings, the loses could be severe. The banks are potentially saving themselves billions. Volatility is really the name of the game right now in all markets. Commodities are booming. Equities are having wild swings and bonds are all over the place. Until the credit markets settle down, investors have to play defense.
- BA