Oh dear. As reader Marshall said, “Well, it’s not Summers…it’s even worse.”
I had really hoped for Volcker. That would have been 1000 points on the Dow, and more important, he is the only one I can think of who has the stature to negotiate with our friendly foreign funding sources about the future of the dollar. I have it from someone supposedly very well plugged in that he was offered the job and the Obama crowd was trying to persuade him to take it for a year.
Sen. Hillary Clinton, New York Federal Reserve President Tim Geithner and former Energy Secretary Bill Richardson have all accepted posts in President-elect Barack Obama’s cabinet, according to media reports. Clinton accepted the position of secretary of state, the New York Times reported. Richardson is in line to become Commerce secretary and Geithner was picked to be Treasury secretary, NBC News reported
The markets, however, are taking it better than I am. From Bloomberg:
U.S. stocks rose and the Standard & Poor’s 500 Index rebounded from an 11-year low as NBC News reported President-elect Barack Obama will nominate New York Federal Reserve Bank chief Timothy Geithner to head the Treasury.
Citigroup Inc. pared a 35 percent slide and JPMorgan Chase & Co. trimmed a 16 percent tumble after the report. National- Oilwell Varco Inc. and Chesapeake Energy jumped more than 12 percent as crude advanced for the first time in six days. The rally in the S&P 500 came after this week’s rout dragged its valuation to 16.4 times the reported earnings of its companies, the cheapest since 1995.
The S&P 500, which is poised for a third-straight weekly decline, gained 2.7 percent to 772.83 at 3:20 p.m. in New York. The Dow Jones Industrial Average rose 242.84 points, or 3.2 percent, to 7,795.13, while the Nasdaq Composite Index added 1.6 percent to 1,337.76.