As stock markets attempt to notch up a sixth consecutive week of gains, the debate as to the longevity of the nascent rally rages on. The featured video material sees Steve Leuthold stating that the S&P 500 Index will rise to 1,100 this year, but Laslo Birinyi taking a bearish stance and advising that the “odds are not with you”. Similarly, Jim Rogers expects more “bottoms”, Nouriel Roubini claims markets to be “way too optimistic” and acclaimed Cazenove chartist Robin Griffiths is looking for a retest of the March 9 lows.

As far as the economic outlook is concerned, Martin Feldstain refers to the “faux recovery”, whereas Wilbur Ross and Abby Cohen comment on the slowdown in the econimic deterioration. Adding to the economic debate and related issues such as bank stress tests, the blame game, Goldman Sachs and commercial real estate, this week’s harvest

...

Last week, General Motors Corp. (GM) may have received another holiday gift from the government -- permission for GMAC Financial LLC to become a bank. In addition, the Treasury Department announced it would provide $5.0 billion to GMAC, out of the $700 billion bank rescue program (TARP). Also, the Treasury will lend up to $1.0 billion to General Motors, so that it can purchase additional equity that GMAC is planning to offer as part of its effort to raise more capital.  Since last week's decision, GMAC Bank has been advertising 4.00% 12-month CDs -- significantly above the 2.66% national overnight average per Bankrate as of last night. If GMAC can attract an equal amount in CD depositors, the new bank would have about $12 billion in capital to lend at approximately a 6.0% average cost. What could this mean to GM?If GMAC makes available ...

For a guy with a Harvard MBA, President Bush simply doesn’t get how real banks work… but anyone who has waited three to five days for an out of state check to clear gets how the “float” works.

Government regulations allow the bank to use that money for a few days before you get your shot at it. Hope the President opts for direct deposit on his pension check, book royalties and the millions he’ll get paid to speak in public.

Anyway, the Associated Press reports that, earlier this week, it was an impatient White House that prodded banks and other financial companies to quit hoarding billions of dollars flowing into their vaults from Washington and start making more loans.

Hoping to thaw the economy-chilling credit freeze, the Bush administration told banks to stop being sissies and open up loan windows for cash-starved businesses and consumers who have pulled back on spending.

“What we’re

...

The credit virus just keeps spreading, and with each new outbreak of disease, various government agencies are forced to respond. The government is now talking about allowing insurance companies to get their hands on billions in bailout money. Here's an excerpt from the Washington Post:"The Treasury Department is working on ways to broaden its $700 billion bank rescue program to help insurance companies that are a critical backstop to a wide range of deals, bond issues and leasing arrangements, sources familiar with the matter said."Treasury is worried that insurance companies, many of which report earnings next week, could face similar fates as American International Group as the credit crisis worsens, triggering a new wave of problems for the financial markets. AIG nearly collapsed last month when it was overwhelmed by losses from real estate investments and derivatives, requiring massive government loans of more than $123

...