Thursday, September 25, 2008

9/25/08- Market Gains on Optimism that $700 Billion Plan will be Approved by Congress

9/25/08- The Dow gained 198.17 to close at 11,023.34 while NASDAQ was up 30.89 to close at 2,186.57. The S&P 500 closed at 1, 209.66 up 23.79. Oil was up 2.29 per barrel to close at 108.02. The Ten year treasury note was down .3 to close at 101.22 pushing the yield up to 3.85. The dollar lost .00128 against the Euro so that one Euro will buy $US 1.46327. Today's market gains were caused by a belief that Congress has enough votes to pass Treasury Secretary's Paulson's $700 billion rescue plan. However, we agree with former SEC Commissioner Raul Campos' comments we heard him make at a luncheon speech in Atlanta yesterday that the Federal government could provide various back-stops and loan guarantees without paying out a penny and achieve the same objectives as writing a check for $700 billion. That is all from Atlanta.