The $700, now $805 billion bailout passed the U.S. Senate last night. Now we have to wait and see what will happen with the House. Over the last few days there has been many articles written about what $700 or $805 billion would buy if it was spent on the people of the U.S. rather than the financial institutions that caused the mess. I agree something has to be done, as the credit freeze is affecting those with good credit, who would and are qualifiying for a loan (the types of loans the financial institutions should have made over the last few years), and the is no money to loan.
What this economy needs right now is no different than what a business needs, CASH FLOW. Consumers have nothing to spend and can't even borrow if they wanted to spend.
The markets are in their usually roller coaster ride they can do when uncertainty reigns supreme!
Some interesting items in the financial press, from yesterday (Wednesday, October 1st), is that General Electric is offering to offer shares of stock to sell in an effort to raise $12 billion to give it a chance for acquisitions - clearly it thinks there could be some valuable companies "on sale" when this all shakes out. GE stock is off more than 34%, more than the market (off about 21%). Interesting report has Warren Buffett interesting in buying into GE!
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