Monday, May 10, 2010

Caterpillar (NYSE:CAT), Citigroup (NYSE:C), Bank of America (NYSE:BAC) Up on Response to EU Sovereign Debt Crisis

Caterpillar (NYSE:CAT) and Citigroup (NYSE:C) and Bank of America (NYSE:BAC), among others, surged today as close to $1 trillion in loans were offered to battle the growing sovereign debt crisis in Europe.

Caterpillar was up over 7 percent as of this writing, Bank of America was up by just under 7 percent, and Citigroup was up by 5.5 percent on the day.

Boeing also enjoyed solid gains, rising by over 6 percent as well, as confidence returned to investors after a long period of uncertainty as to how Europe would respond to the crisis.

Even so, once the smoke clears, it's dubious as to how this will help, as rewarding these socialist countries with close to a $1 trillion for irresponsible financial behavior and their culture of entitlement does nothing to deal with the underlying causes of the problem, which is nothing more than spending more than the countries could afford.

As a growing number of people are saying, you can't solve debt problems by printing more money and throwing it at it. Wait until people in the United States find out the Federal Reserve through a bunch of money at the problem as well.

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