Welcome to wave 2.
See what happens when the government intervenes?
This is purely political folks.
Investors pull out of shares, go back into commodities, oil prices rise, making more investors pull out of shares and go back into oil, etc...
Did the government just help the economy or trash it?
What they did is unforgivable.
At this point, the future becomes unpredictable because unpredicted variables are way too important, way out of the scope of any error margin. Because no one in this world would have imagined what happened in the last weeks (sudden collapse of Lehman, sudden leaning at AIG) no one knows what will happen from now on. These events had no warning signs, so I think this is manipulated.
At this point it's impossible to predict what will happen over the next months. When the government comes up with things like this in an economy in recovery, there's nothing to do...
We don't know yet how bad it's going to be but the measures taken by the US government are extreme and the response of investors will be extreme.
If governments help banks, they will have no reasons not to help airlines if it gets really bad.
What an election year...