Bank of America, TARP, Economic Stimulus Help Boost Stocks
Stocks started off today strong, thanks to some help from various attempts to shore up the economy and boost confidence in the market. Or at least boost confidence in the financial sector of the stock market. Right now, it appears as though Bank of America is going to be in a better place, thanks to the bailout money it is about to receive from the government. This, along with the news that Citi plans to split itself in two in an effort to salvage its balance sheet, is providing some optimism for investors on the stock market. Is now the time to invest in banks — while they’re at rock bottom prices?
But that’s not all the “good” news for the economy and the stock market from this week:
- Congress is okaying the release of the rest of the TARP funds approved last fall. The money is supposed to also help the regular folks — not just the big banks. But we’ll see how that really turns out.
- Economic stimulus legislation has been presented to the public. This legislation looks promising in some areas, but not so great in others. It is nice that infrastructure and education and states are likely to get some support. But tax cuts at a time of increased spending does not seem like the best idea. But it’s the idea that is politically popular right now. (At least, until it becomes evident that taxes will have to go up again.)
In any event, some are predicting the light at the end of the financial mess tunnel. I’m not sure that it’s not an oncoming train…
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
