Tuesday, October 14, 2008
As you're probably aware, the stock market had another crazy day yesterday, this time picking up instead of losing almost a thousand point. The news that the U.S. government was set to pump billions into faltering banks by buying preferred stock in those banks (a move Europe initiated yesterday) as well as guarantee debt incurred by the banks for the next three years and bolster the commercial paper market has apparently convinced Wall Street that the worst of the credit crisis has passed. For their part, Congressional Democrats are considering a stimulus package for consumers that would probaby entail money for infrastructure improvements, money to cash-strapped state and local governments, and perhaps another tax rebate for Americans along the lines of this year's earlier stimulus package (the White House has vowed to veto any such packages.) Obama is apparently also in on the talks, and is proposing more funds for food stamps, unemployment benefits and health care costs, though Congress is looking to limit the package to $300 billion.