Today was a very good day on Wall Street. Dow Leaps 497 Points as U.S. Lays Out Bank Rescue Plan (NY Times) Some say we may have seen the bottom. Some say not. This week will be an important one as we watch each day how the markets respond to the actions of both the Federal Reserve and the U.S. Treasury.
The actions of these two organizations, one independent of Congress and the other tied to it, are working together to stabilize our economy and to bring liquidly back to the market. As we have all heard, this is not just a Wall Street issue. It’s hit Main Street hard. Large Businesses, Small Businesses, Student Loans, Mortgages, and Consumer Credit have all been affected. I’ve yet to meet anyone who has not felt the pinch in one way or another.
The big questions for now are “What’s Being Done?” and “What does it all mean? There are reams of articles that try to answer these questions, written by folk’s much closer to the issue and lots smarter than me. Instead of trying to analyze it again, I have pulled together 4 videos that together help put “What’s Being Done” into perspective. In the first video (INSERTED ABOVE) Federal Reserve Chairman Ben Bernanke explains how we can keep history from repeating itself. In the second video (see links below) he talks about what the Fed has done and is continuing to do. In the third and fourth videos, Treasury Secretary Geithner explains his plan and Treasury’s actions to get things back on track.
Three More Videos to Watch:
Fed Chairman Bernanke on Financial Crisis
Geithner Pushes Bank Rescue Plan, Part 2
It’s the fact that , finally, there are detailed plans and that both the Treasury and the Fed are tacking action, that is driving market confidence – and prices up.
So, you may be wondering – is this the answer. Truthfully, no one knows. But for the first time, in a long time, we are starting to see a turn in market confidence – and THAT is a very good thing.
Stay tuned…
– Joan Koerber-Walker