The title is written both with amazement and doubt. Lehman begs for more money and the market goes up. Merrill says we don't need no stinkin' money and the market goes up. And now Fitch downgrades MBIA and the market did not react.
Lest we forget, MBIA is one of those bond insurers that is in the middle of the CDO/subprime/credit crisis and lives and dies on its ability to bestow upon customers the umbrella of its own AAA rating. Now that is gone by the number 3 ratings agency.
The stock fell on the news, which came out about 2:30 Friday (NYT). The market softened but essentially ended at the flatline. Volume for both was rather boring, save for one spike at news time on the stock. Its price dipped and recovered immediately but ended up sliding from there anyway as the day winded down.
I'm not sure what to make of that. Initially, the news was shrugged off but then calmer head prevailed and it slid. So was it actually shrugged off?
I care less about the stock than the market at this point and the market yawned. We must be in a bull - a glorious bull market where life is beautiful and nothing can stop us now.
Oh wait, the economy. Now it is true that the stock market looks 9 month out and will, not can, but will start to rally before the economy rebounds. So if all news is good news, as it is in a bull market, then we have to assume that the economy will be hunky dory *whatever that means) by November.