FDIC Could Raise Limits
Stocks roared up today on the idea that Congress will pass the bailout; and rose 485 points.
Basically all the other market unwound part of the gains/losses they made yesterday.
In the news today….
Congress is talking about having a new bill drafted for the bailout. The people who voted against the bill yesterday are saying they want a new bill drafted from the bottom up; not just a rehab of the last bill. While it won’t take many more votes to pass it this time around, it would be a major market disaster if it fails a second time the vote is taken.
FDIC recommended that its limits be raised from $100K to $250K per account. Both candidates have endorsed this recommendation.
July home prices fell 16% in the last 12 months. And, this is the major cause of the problem with that toxic paper. If house prices continue going down, Paulson will be coming back for a second major injection of funds from Congress – assuming the first one passes.
Here are Today’s numbers:
Dow Jones 30 Industrial – 10,850 (up 485 points)
10 Year Treasury Bond – 3.83% (up 0.20%)
Euro – $1.4075
Gold – $881 (down $14)
Oil – $100.64 (up $4.27)
Gasoline – $2.46 (up $0.10)
