People may not want to hear it, but once again, all credit to Tim Geithner and the rest of the folks in Washington for pulling off the stress test stunt.
It’s not just that the results were released without causing chaos. By producing a strong rally, we’ll see a slew of quick share and bond sales, easing pressure on the public and calming banking system nerves, at least for now.
If the numbers in the stress test prove to be wildly optimistic, and the big commercial real estate portfolios and off-balance sheet arrangements come back to kill the banks, then that’s another story. But that’s not what we’re talking about here.
Right now, early pre-market indicators show a positive market. Though we’ve got the jobs report coming up and if volume is weak today — something traders have been honing in on — watch for the tide to turn.
A big milestone: It looks like Citi’s going to crack $4!
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