It was a bad day again on the stock market as investors were unnerved by the governments plan to buy $700 billion in banks’ mortgage debt.
Stocks fell sharply, taking the Dow Jones industrials down more than 370 points.
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Wall Street bounced back today shooting the Dow Jones industrials up more than 400 points after a report that the federal government may create an entity that will take over banks’ bad debt, reports CNBC.
Treasury Secretary Henry Paulson is considering forming an entity like the one that was set up after the failure of savings and loan banks in the 1980s.
Barack Obama commented on the upheaval on Wall Street today saying it is ”the most serious financial crisis since the Great Depression.” He also links it to Bush.
“This country can’t afford another four years of this failed philosophy,” Obama said after the shock-wave announcements that financial giant Lehman Brothers was filing for Chapter 11 bankruptcy while titan Merrill Lynch was being bought by Bank of America for about $50 billion.
