It's a classic moral hazard. People believe that the government is going to intervene. That directly to them, reduces their perceived risk, therefore they invest in firms they normally would not have invested it.
Those who subscribe to Buffet's ideology of "be greedy when others are fearful and be fearful when others are greedy" have already bought huge sums of stocks weeks to months ago.
Post edited at 1:55 pm on Sep. 18, 2008 by obvious child
-------
"I give the probability of this working at zero" - Dan DeMatteo
361 users online 
221646 members 
You have 1 new message.
Patron
Ad Free
