The Dow Jones average took a leap that hasn't been seen in quite some time. Wall Street literally got high, on the news of the Treasury secretary's plan to buy up bad bank assets. Here are excerpts from the CNN Money article about the Dow increase:
The Dow Jones industrial average (INDU) gained 497 points, seeing its biggest one-day point gain since Nov. 21. The gain was equivalent to 6.8%, which was the biggest one-day percentage gain since Oct. 28.
The S&P 500 (SPX) index rose 54 points, its best one-day point gain since Nov. 13. The percentage gain of 7.1% was the best since Oct. 28.
The Nasdaq composite (COMP) added 99 points or 6.8% for the best one-day point and percentage gain since Oct. 28.
plez sez: consumer confidence is still in the crapper, but it is a good sign when wall street can begin to see light at the end of the tunnel. with the Obama administration's plan to buy close to $1 trillion in bad bank assets and housing starts up for the first time in close to a year, there are hopes that a recovery is in the offing.
unfortunately, wall street will reap the rewards of a recovery long before main street begins to feel it.
in other good news, it appears that a majority (15 of the 20 top executives) of the bonus money will be returned to a.i.g. coffers... the outstanding bonus money went to overseas executives.
Read the CNN Money article about how the Dow jumped almost 500 points on Monday.
Read the CNN.com article about how congressional Republicans don't like Tim Geithner's plan to buy up toxic assets from banks.
Read the CNN.com article about David Gergen's take on Geithner's plan for the banks.