Herd Mentality on Wall Street

The Dow Jones is soaring today - up at last check over 400 points.  This is all because of the Euro $1 trillion bailout of Greece. The Wall Street Journal captures the sense of momentum.

NEW YORK—U.S. blue-chip stocks barreled toward their biggest one-day point gain of the year on Monday as a new nearly $1 trillion bailout package to help stabilize Europe lured investors back into riskier assets.

The Dow Jones Industrial Average climbed 350 points, or 3.4%, to 10732 in early trading, on pace for its biggest one-day gain of the year.

There - it's all fixed. The underlying problem of profligate Greek spending on an unsustainable model, all fixed too. Right? Otherwise the market that was dropping last week would not have found some new buoyancy. And now President Obama can claim that the underlying market fundamentals are sound. No doubt, thanks to him.

This herd mentality in the rush to bid up prices based on a solution just seems a little premature.