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By Jason Stipp | 12-02-2011 12:00 PM

What's the Rush in the Market?

It was a hurry-up week as central banks rushed to action, American Airlines dashed to bankruptcy court, and AT&T scrambled to save a merger deal.

Jason Stipp: I am Jason Stipp for Morningstar and welcome to the Friday Five.

Black Friday shoppers weren't the only things rushing around last week. Morningstar markets editor Jeremy Glaser is here with five hurry-up stories from the market.

Jeremy, thanks for joining me.

Jeremy Glaser: You're welcome, Jason.

Stipp: So what you have for the Friday Five this week?

Glaser: Well, I am going to talk about central banks, AT&T, American Airlines, Tiffany, and Daimler.

Stipp: So, the markets were pretty happy on Wednesday after some coordinated central bank action. What's your take away from that?

Glaser: There really was a rush into stocks when central banks across the world got together and said that they are going to take extraordinary steps to make sure that European banks have access to dollar liquidity. This has been a major concern for European banks. There aren't a lot of, say, U.S. money market funds that are just falling over themselves to lend dollars to European banks right now given all  the sovereign debt problems over there. So, this really was a big sigh of relief for them,

And you could hear this sigh of relief from investors. I think they cheered a few things. The first was just the actual announcement, that you're getting these dollars out there, I think certainly frees up the European banks possibly to lend, possibly to keep them solvent for at least a little bit longer.

Secondly, it showed that the global policymakers are still able to come together and have a coordinated response to this kind of crisis, and I think that that certainly cheered people up.

But this action really wasn't all good news. I think first it just shows how dire the situation has really become, that you have banks from across the world, who feel like they need to step in to keep the problems from spilling over into lending and spilling over into the rest of the global financial system.

I think that for a while we hoped that maybe it could contained just in Greece just in the periphery or just in Europe, and I think that's looking increasingly unlikely. That this is truly a global crisis and not just a European crisis.

Secondly, this really isn't a long-term solution. The market was rallying almost as if the entire crisis had been solved, and this really just buys some time. It gives the banks some breathing room, but it doesn’t deal with any of the underlying issues.

And I think we are going to be hearing a lot more about those issues in the coming weeks in front of the European Summit that's due, and then also the large amount of debt that Italy has to refinance in January.

Stipp: In the telecom space, Jeremy, there was some rushing around related to the AT&T/T-Mobile deal. What's the story there, and why is AT&T kind of scrambling now?

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