The upcoming massive transfer of wealth from taxpayers to shareholders of large financial institutions is having its desired effect in the short term, as stocks around the world are up.
Bloomberg: The MSCI World Index climbed for the ninth time in 10 days, increasing 1.2 per cent at 9:33 a.m. in London. The gauge of 23 developed nations has added 16 per cent since March 9 as Citigroup, Bank of America Corp. and JPMorgan Chase & Co. said they made money in the first two months of 2009 and the Federal Reserve said it would buy $300 billion of government bonds to combat the worst financial crisis since the Great Depression.
Futures on the Standard & Poor’s 500 Index gained 2.8 per cent. Geithner is expected to introduce the Public Private Investment Program today, expanding the bailout of the financial system by relying on enticing private investors to buy the troubled assets clogging banks’ balance sheets. Read the whole thing >