How come foreign markets soared after news of Fannie/Freddie bailout?

MNSL answered one year ago …

Current market is speculative driven.

Generally, whenever there is positive news from the USA other markets go up
Investors think by bailing out Fannie and Freddie there will be some hope for them.Only time will tell us how these bail out is going affect for the world financial market. .

However, we cannot ignore that the global credit squeeze, which erupted last August and has yet to run its course, could have a considerable negative impact on commodity demand and some sectors in the stock market.

BANKS, which have been speculating in commodities, soon will suffer further capital implosion.

In addition, some banks are over exposure to credit card and consumer loans. Some investors have concern about credit card bubble as well. I think some people should withdraw their money from some banks now before it is too late. Every other day they are trying to freeze funds now in some countries.

In summary, I think there will be some temporary stability by this decision. However still there are some problems to address. Once these problems short out there will be excellent investment, opportunities in some selected banks through out the world in the next 03 years.