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| Stocks surge on report of entity for bad debt - Did Petraeus Xfer to Wall ST? |
| 2008-09-18 |
| Wall Street surged higher Thursday, with the Dow Jones industrials up more than 400 points after a report that the federal government is considering creation of a repository for banks' bad debt. CNBC said Treasury Secretary Henry Paulson is considering creation of an entity like the Resolution Trust Corp. that was formed after the failure of savings and loan banks in the 1980s. Investors were cheered by the notion of a huge federal intervention like the establishment of RTC to acquire the real estate debt that has hobbled financial institutions and led to the intense volatility in the markets this week. If there's an RTC-like entity, "it's going to take a lot of the bad debt off the balance sheets of these companies," said Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York. That would alleviate many of the pressures causing the credit crisis, he said, and open up the credit markets again. However, Fullman added, "the devil's in the details." In late afternoon trading, the Dow soared 406.29, or 3.83 percent, to 11,015.95. Broader stock indicators also jumped. The Standard & Poor's 500 index rose 41.54, or 3.59 percent, to 1,197.93, and the Nasdaq composite index advanced 76.52, or 3.65 percent, to 2,175.37. |
| Posted by:GolfBravoUSMC |
| #3 creation of a repository for banks' bad debt I don't think the feds have enough zeros to make one big enough. |
| Posted by: Anguper Hupomosing9418 2008-09-18 20:02 |
| #2 McCain wanted this regulatory entity built in ***2006*** to supervise Fanny May and Freddie Mac. Obama did nto stand up and pass it - he instead took lobby money - and his economic advisors now awarded themselves 10's of millions in bonuses while they let FM/FM into collapse. Someone has to pin Obama to the wall for his people screwing us, the taxpayers, while they got rich and funded Obama's campaign. |
| Posted by: OldSpook 2008-09-18 18:58 |
| #1 ...after a report that the federal government is considering creation of a repository for banks' bad debt. aka The American Taxpayer/Worker. |
| Posted by: Procopius2k 2008-09-18 16:28 |