The market is healing and no one is noticing…Remember, watch what people are doing, not what they are saying.

1. Goldman Sachs is dying to pay back $10 billion in TARP money, they would do it today because they could be out there making a killing if it weren’t for TARP restrictions.

2. Morgan Stanley announced on 2/10 that they want to repay TARP funds as well.

3. Barclays had a great quarter and reiterated they don’t want UK bailout money.

4. Ken Lewis of BAC claims they don’t want any more TARP money, but the jury may still be out on this one. Plus, he has taken his own money and bought over $1million worth of BAC stock recently.

5. Jamie Diamond at JP Morgan laughs at all the talk of nationalizing banks and says they are doing fine and lending money out everyday.

6. Libor has fallen to very reasonable rates, meaning banks are lending money to each other at a pretty reasonable and doable rate

7. Corporate bond insurance, or credit default swaps, have dropped at a staggering rate over the past 6 weeks, meaning the threat of default on quality companies’ debt is view as very minimal.

8. Junk bond yields, although still attractive, are plummeting as investors pour into certain sectors chasing yield.

9. The Bad Bank idea seems to have taken a backseat as it might not be as “needed” as some though, now government partnerships and handshakes seem to be all that might be needed to get over the credit freeze hump.

10. Goldman Sachs and others have estimated the true number to get this mess in the rear view mirror is $4 trillion and guess what? The market moved 20 points. What else can be thrown at this market to drive it to Dow 6000 if we assume $4 trillion of debt and 12% unemployment? Seriously, leave a comment and let me know what scenario can shock the market down to 6000? I am not saying we won’t test 7500 or even 7000 again, but overall, I don’t see what can put us to some of the Dow 5000 or 6000 pundits out there.

Just added

11. After seeing Tim Geithner’s speech yesterday, as shallow and empty as it was, I have to say it proves my point. The Obama administration comes out with the turkey, and yet the market can’t be driven down past 7850.

Really?? What else can they do to mess this up?

It reminds me of Brewsters Millions with Richard Prior, it’s like they are trying to get the Dow to 5000 and just can’t do it.

jackson’s this is it