Yesterday's increase in North American stock markets seems to be a result of some strong reported earnings by banks, but mostly on a comment made by the CEO of Citibank. We are so desperate for good news, that we will hang on the every word that comes out of these large companies. Citigroup announced that it was profitable in January and February, while Bank of America stated that it could withstand the economic downturn. Isn't it amazing what a few hundred billion dollars of taxpayer money can do?
I am all for the stimulus package, but this just shows how sensitive the markets are. These were not quarterly reports or economic updates, they were verbal statements with nothing to back them up. I have to believe that both statements are true and I am happy to see markets go up almost 10% in 2 days, but it seems a little desperate for my liking. Maybe a dose of desperation is exactly what we need to move forward and prosper.