Happy days are here again
Ah yes… Nothing like a few good mergers to take Wall Street's mind off the subprime meltdown. The first two paragraphs of the Associated Press's Monday market roundup say it all:
NEW YORK (AP) — Stocks spiked higher Monday as Wall Street
joined overseas markets in riding a wave of merger news to bounce
back from a losing week. The Dow Jones industrials rose 115 points.
The buyout news, particularly the possibility of an enormous
deal that would unite Dutch bank ABN Amro Holding NV with British
bank Barclays PLC, propelled stocks higher as investors theorized
that companies remain upbeat about the economy if they're willing
to cut new deals.
So there you have it. The subprime lenders can keep going under at a rate of, oh, two or so every week, but if the money shufflers with all the mortgage-backed securities (to say nothing of their derivatives and swaps) keep making deals, the party continues.