The bond markets were closed Monday, but the equity markets soared on the heals of the announcements made by the EU, Britain as well as other countries around the world detailing their plans for dealing with the financial crisis.
As I mentioned Sunday in my blog, Pleasure or Pain?, the rally in the markets on Friday afternoon came in part due to the belief that the finance ministers would do WHATEVER it takes to restore confidence and stability, particularly in the credit markets.
Do We Want To See a Repeat Of Yesterdays Market Action?
Of course we do. We came down so far so fast that it is only logical that we would see a bounce. Monday we saw one hell of a bounce. Gains in the stock markets not seen for 70 years. But how far do we go? Are we out of the woods? Did we avoid a recession? No and no, but we could still have a significant rally.
What's it going to take? Today at 8:05 EST, President Bush will hold a press conference providing further details of the package to restore public confidence, financial stability in the credit markets and a plan get the banks lending to each other again.
The Critical Point
In the points presented, we will hopefully hear of some aspect that will guarantee interbank lending which is critical to unfreezing the flow of credit. Something similar to what was announced in Europe.
This will help all of the people that need credit get it, and help to keep the wheels of the economy from falling off. It is supposed to be in the plan and hopefully will be.
We'll see what happens.
Interesting Trivia: The 10 Most Expensive Zip Codes
From The Real Estate Bloggers, these are the 10 most expensive zip codes in the United States:
Top 10 Most Expensive Housing Zip Codes In United States
33109 – Fisher Island, Fla., Miami-Dade County Median sales price: $3.85 million
07620 – Alpine, N.J., Bergen County Median sales price: $3.59 million
11765 – Mill Neck, N.Y., Nassau County Median sales price: $3 million
92657 – Newport Coast, Calif. Orange County Median sales price: $2.8 million
11976 – Water Mill, N.Y. Suffolk County Median sales price: $2.72 million
94027 – Atherton, Calif. San Mateo County Median home price: $2.7 million
93108 – Santa Barbara, Calif. , Santa Barbara County Median home price: $2.7 million
11975 – Wainscott, N.Y. Suffolk County Median home price: $2.56 million
92067 – Rancho Santa Fe, Calif. San Diego County Median home price: $2.47 million
90210 – Beverly Hills, Calif. , Los Angeles County Median home price: $2.41 million