COMPLETE COVERAGE:

COMPLETE COVERAGE:
Twilight: New Moon

°

Homepage / Money
Text Size

Stocks Fail To Continue Momentum

Bush To Hold Talks On World Economic Crisis

POSTED: Tuesday, October 14, 2008
UPDATED: 9:20 pm EDT October 14, 2008

Stock prices on Wall Street ended a relatively calm day with a moderate decline, with the Dow failling 77 points as profit-taking set in after Monday's massive advance. It's the first time in nine sessions that the Dow hasn't closed up or down in triple digits.

Cash To Banks | Save Money

After some early gyrations, stock prices fluctuated during the day, but the Dow and the Standard & Poor's 500 index were often in the plus column. Investors were optimistic about the government's plans to spend $250 billion to buy stock in private banks, but they also decided to collect profits from the surge that sent the Dow up 936 points.

The Dow closed at 9,310 level after being up more than 400 and down more than 300. The Nasdaq composite index showed a sharper decline, falling more than 3 percent to the Dow's pullback of under 1 percent, as investors gravitated toward stocks they believed would benefit most from the government's financial sector plans.

President George W. Bush plans to hold talks on the global economic turmoil Saturday at his Camp David retreat with French President Nicholas Sarkozy.

The White House, in announcing the president's plans, said Tuesday that European Commission President Jose Manuel Barroso will also attend the weekend meeting.

White House press secretary Dana Perino said that Bush spoke by phone Tuesday morning with Sarkozy and the leaders of Britain and Germany following meetings at the White House on Monday with Italian Premier Silvio Berlusconi. Bush also has scheduled a Cabinet meeting at the White House on Wednesday.

Bank Shares Plan

The government's move to use a chunk of the $700 billion bailout funds to buy bank shares follows a similar one announced Monday by European governments to invest about $2 trillion in their own troubled banks.

Bush said the moves are "not intended to take over the free market, but to preserve it."

Bush said the federal government will use some of the $700 billion bailout funds to inject money into banks "by purchasing equity shares."

He said the Federal Deposit Insurance Corp. will "temporarily guarantee" most new debt issued by insured banks. The FDIC also will expand government insurance to cover all non-interest-bearing accounts, aiding small businesses in covering their day-to-day operations.

The president also said the Federal Reserve will "soon finalize work" on a new program to serve as a buyer of last resort for commercial paper.

Bush, in the latest of a series of statements on the troubled economy, said that and other steps will help restore confidence and "return our economy to the path of growth and prosperity."

The government is expected to initially purchase stock of nine large banks, but the program is expected to be expanded to many others. Among the initial banks participating will be all of the country's largest institutions, including Citigroup Inc., Wells Fargo & Co., JPMorgan Chase & Co, Bank of America Corp. and Morgan Stanley, said one official, who added that administration briefers did not provide any amounts that would be received by individual banks.

There would also be a bold step to unlock a vital credit flow -- bank-to-bank lending, which has dropped sharply over fears of repayment amid billions in bank losses.

Candidates Offer Solutions On Campaign Trail

Both Sens. John McCain and Barack Obama offered new ideas to combat the financial crisis.

McCain announced that on Tuesday, he would unveil new economic proposals aimed at middle-class taxpayers.

Campaign spokesman Tucker Bounds said McCain "will address the ongoing financial and economic crisis, with a special emphasis on those most badly hurt: workers, homeowners, savers and seniors."

Word of the proposals came on the same day McCain delivered his toughest criticism so far of Bush's economic policies.

In Virginia, McCain said, "We cannot spend the next four years as we have spent much of the last eight: waiting for our luck to change."

During a campaign stop in Toledo, Ohio, Obama proposed steps to heal the economy, including a 90-day moratorium on home foreclosures at some banks and a two-year tax break for businesses that create new jobs.

Obama also proposed allowing people to withdraw up to $10,000 from their retirement accounts without any penalty this year and next.

The Democratic presidential candidate said his proposals, with a price tag of $60 billion over two years, can be enacted quickly.

Text Size
The views expressed are not those of ClickOnDetroit.com, WDIV or its affiliated companies. This is a community moderated forum. (Please note the 'Like' and 'Report' tabs.) By posting your comments you agree to accept our Terms of Use.

Comments

blog comments powered by Disqus

Links We Like

Sponsored Content
The first step in reducing debt is recognizing how much you have. Let us help you with the rest and get out from under your debt in 12 months. More

Get car insurance quotes from all the major carriers and save time an money in the process. Just enter your zip code and start saving today. More

Does your phone have bad reception or drop calls in your house? Then you need a Magic Jack. More

A degree from ITT Technical Institute can help you achieve your goals and get you started on the path towards a rewarding career. More

Most Popular

Marketplace

  • AutoClick to Expand

  • JobsClick to Expand

    • 7 Killer Cover Letter Mistakes

      Don’t ruin your chances of landing that new job by making easy to correct mistakes on your cover letter.

    • Why Having Fun At Work Matters

      If people are having fun, they’re going to work harder, stay longer, maintain their composure in a crisis and take better care of the organization.

    • Ten Tips To Boost Your Interview IQ

      Interviewing is a learned skill, and there are no second chances to make a great first impression. So study these 10 strategies to enhance your interview IQ.

    • Learn How To Deal With Pay Cuts

      If you’re about to take a pay cut, find out how you can go about dealing with it and stay proactive about your salary.

  • WomenClick to Expand

    • Healthy Living In Your 40s

      Your guide to looking and feeling your best.

    • Manage Stress, Find Balance

      The idea of living a balanced life may seem like an oxymoron. Yet working toward balance and self-care is key to feeling in control and more joyful at home and work.

    • Weight & Exercise: The Right Mix

      Being healthy is related to how well you take care of yourself. But it’s never too late! A woman can learn new, healthy habits at any age.

  • InsuranceClick to Expand

    • Auto Insurance Quotes

      Simply enter your zip code and get great deals on your car insurance from the top companies. Click here and start saving today!

    • Health Insurance Quotes

      No matter where you live, you shouldn’t have to pay too much for health insurance. Your zip code is all you need and we’ll do the rest to find you great insurance rates.

    • Home Insurance Quotes

      Your home is your most valuable asset. So make sure you have coverage that fits your needs and doesn’t break the bank.

    • Life Insurance Quotes

      What would happen to your family if you were suddenly gone? Don’t leave their future to chance and find top quality life insurance before it’s too late.

    • Business Insurance Quotes

      Don’t take chances when it comes to insuring your business. To get the best rates from top companies in your area just enter your zip code.

  • Your LifeClick to Expand

Question Of The Day

Do you have plans to see the new Twilight; New Moon movie this weekend?

Sponsored Links