Re: DOW Up 416.66 : Financial Groups' Correction?

On Tue, 11 Mar 2008 13:30:17 -0700 (PDT), perrie
<perryneheum@[EMAIL PROTECTED]
> wrote:

>We'll see if it continues tomorrow, won't we?


http://biz.yahoo.com/ap/080311/wall_street.html

Dow Jumps More Than 400 Points After Fed, Other Central Banks Move to
Ease Credit Crisis

NEW YORK (AP) -- Wall Street finally found a reason for a huge rally
>Tuesday, after the Federal Reserve said it plans to pump $200 billion
 into the financial markets to help ease the strain from the credit
crisis. The Dow Jones industrial average shot up more than 416 points,
its biggest one-day point gain since July 24, 2002.

The Fed's program is part of a worldwide effort to help struggling
banks and mortgage providers. The Fed -- acting in concert with the
European Central Bank, the Bank of Canada and the Swiss National Bank
-- agreed to loan investment banks money in exchange for debt,
including slumping mortgage-backed securities.

The move is meant to essentially create a market for assets that
investors have been too scared to buy. That freeze-up in demand had
sent asset values plunging and caused huge losses for some of the
world's biggest banks.
... .

"It's not just a rate cut. I think it's a very creative way to do
financing," Conroy said. "It shows the Fed is willing to do things
that are a little out-of-the-box to shore up credit issues. I really
think they went to the heart of the issue."



**** - a $200 billion bailout?  Who's going to get the tab for this?

And why is the fed saving the markets? It's charter is to manage
employment and inflation.