Posted tagged ‘Fannie May’

Stocks Drop Sharply as Dow Jones Drops Below 10,000

October 6, 2008

The selling on Wall Street began at the opening bell on Monday and only intensified as the morning went on. Shares moves sharply lower as the banking crisis tightened its grip on the global economy.

The Dow Jones industrial average fell below 10,000 for the first time since 2004 after losing more than 500 points in the first hour of trading. The index has lost more than 1,100 points in the past two weeks and no end seems to be in sight. It appears that whoever wins the election one month from now, Barack Obama or John McCain, will have to step up and find a way to end this crisis.

From the Associated Press:

The markets have come to the sobering realization that the Bush administration’s $700 billion rescue plan won’t work quickly to unfreeze the credit markets, and that many banks are still having difficulty gaining access to cash. That’s caused investors to exit stocks and move money into the relative safety of government debt.

Over the weekend, governments across Europe rushed to prop up failing banks. The German government and financial industry agreed on a $68 billion bailout for commercial-property lender Hypo Real Estate Holding AG, while France’s BNP Paribas agreed to acquire a 75 percent stake in Fortis’s Belgium bank after a government rescue failed.


Government Nears Agreement on $700 Billion Bailout

September 25, 2008

Lawmakers indicated this morning that they were close to an agreement on a proposed $700 billion bailout of the financial system, hours before a meeting at the White House to complete the deal. Freddie Mac, Fannie Mae, AIG, WAMU…listen up…

From the New York Times:

After Congressional staff members worked through the night to hammer out the details of the remarkable rescue effort, Senate and House negotiators gathered for a meeting in the Capitol on Thursday morning, hoping to resolve any final disagreements ahead of the White House gathering.

The Democrats had all but eliminated their differences, and both sides were hoping for a bipartisan consensus to emerge at midday, with the final imprimatur to come at the late afternoon meeting with President Bush, the Congressional leadership and the two presidential candidates.

On Wall Street, shares, which had opened higher, rose sharply on expectations of a rescue plan.

In a brief speech on the Senate floor, the majority leader, Harry Reid of Nevada, said he expected the Senate be in session on Saturday to cast its first procedural votes on the bailout proposal, in which the government plans to buy distressed debt from financial firms and stave off what President Bush warned could be a widespread economic collapse.

Mr. Bush in a prime-time televised speech on Wednesday night, appealed to the nation — and to reluctant lawmakers — to support the plan. And he asked the presidential candidates, Senator John McCain, Republican of Arizona, and Senator Barack Obama, Democrat of Illinois, to meet with him and Congressional leaders in a show of cooperation.