As best we can figure, this rally is providing cover for the big Wall Street banks who are issuing equity as fast as their little hooves can move, to qualify for the TARP payback mechanism.
By 'proving' that the market wishes their debt and equity, Timmy says they will be permitted to pay back their TARP funds, and be released from scrutiny on their bonuses.
While the volumes stay thin and the Fed's wallet remains fat, this rally make continue. Or at least an optimistic trading range.
As a side note, I made the first borscht of the summer season yesterday with very nice beets from a local source. Slowly roasted the beef and beef bones, onions, and celery to carmelize in a foil pan on a grill outside, and then cooked it up with the already cleaned and boiled beets, beef stock, seasoning, a little sugar and vinegar in a big pot for a couple hours. We then allowed it to chill overnight. It was a thin clear broth but a deep purple, and loaded with diced pieces of beef and beets, with a few very small round redskin potatoes.
With a dollop of sour cream and chopped sweet onion, DELICIOUS! and refreshing.
By far the best, and a delightful distraction from this wretched market.
