Aug 31, 2009
Prices on the U.S. stock market seem to have jumped recently – 16% in just the last six weeks alone for the Dow Jones Average.
Don’t hold your breath hoping the economic crisis is coming to an end. Almost one-third of all the trades on the exchange have been in the stocks of just five companies.
Who are they? Some of the shakiest financial institutions around – Fannie Mae, Freddie Mac, AIG, Citigroup, and Bank of America. All of them would have gone bankrupt without big bailouts. But short-term traders (read “speculators”) have been bidding their stock prices up, hoping to make another killing before their latest bubble pops!