Dow comes back big Third-highest point gain ever for blue-chip measure comes on bets that a bailout plan can get passed.
NEW YORK (CNNMoney.com) -- Stocks rallied Tuesday afternoon as investors scooped up shares battered in the bloodletting that followed Congress' failure to pass a $700 billion bank rescue plan.
But credit markets remained frozen. Several closely watched measures of bank lending fear hit all-time highs, as firms continued to hoard funds.
The Dow Jones industrial average (INDU) added 485 points, according to early tallies, recovering some of the record 777 points lost the day before. If the gains hold, it would be the third-biggest one-day point advance for the indicator in its history.
The Standard & Poor's 500 (SPX) index rose 5% and the Nasdaq composite (COMP) gained about 5.3%.
Stock gains accelerated late in the day after the FDIC chairwoman said she'll seek to boost the limit on protected bank deposits. Such a move would give individuals more protection amid the financial crisis. The inclusion of such a provision in the $700 billion bailout plan might also mollify critics who think the plan is too focused on Wall Street, versus Main Street.
Additionally, the SEC said it will announce changes later this week in a critical accounting policy that could help the troubled financial sector account for bad debt based on factors other than current fire sale prices.
Stocks plunged after the House of Representatives failed to pass a bailout proposal aimed at shoring up America's financial services industry.
With a vote of 228 to 205, the measure was defeated, as Republicans delivered fewer votes for the proposal than House leaders expected. Ninety-five Democrats joined 133 Republicans to vote down the bill
700 BILLION??? with a "B"?? I'd buy Belize, kick everybody out, and move there. A kick ass home, car, etc. AND I could still afford to give away half. I'd put a billion aside for some of the foro girls (see "would you fu.ck no-me-acuerdo-que for a billion dollars?" thread)
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The opinions expressed by this poster should always be considered offensive to Guadalupipi.
McCain, Obama talk bailout bill fix at the White House
Some of the key players in the room, according to the White House: Bush flanked at the table by Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi, Obama and McCain on opposite ends of the table, House Minority Leader John Boehner and Senate Minority Leader Mitch McConnell also between the two presidential candidates and Vice President Dick Cheney across from Bush.
In a statement at the beginning of the meeting, Bush said he hopes for a deal to bail out Wall Street "very shortly."
He said the nation is in a "serious economic crisis" that needs to be dealt with "as quickly as possible" and that the historic meeting is "an attempt to move the process forward."
But according to several Republican aides, there is still major opposition to the "agreement on fundamental principles."
McCain, Obama talk bailout bill fix at the White House
Some of the key players in the room, according to the White House: Bush flanked at the table by Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi, Obama and McCain on opposite ends of the table, House Minority Leader John Boehner and Senate Minority Leader Mitch McConnell also between the two presidential candidates and Vice President Dick Cheney across from Bush.
In a statement at the beginning of the meeting, Bush said he hopes for a deal to bail out Wall Street "very shortly."
He said the nation is in a "serious economic crisis" that needs to be dealt with "as quickly as possible" and that the historic meeting is "an attempt to move the process forward."
But according to several Republican aides, there is still major opposition to the "agreement on fundamental principles."
I would invest some, donate some to charity, help close friends and relatives with some, have some fun with some, further my education or take on classes that could help me (cooking, gym trainer, dance lessons), and probably get a few toys to have fun with (upgrade car, house, motorcycle, top of the line entertainment room, etc)... Take some trips and travel more... in general, enjoy life a bit more.
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Not everything I post or say on foro are necesarily true facts. <- THAT is a fact! :blankstare:
The American government are a bunch of rateros, they want to take the tax payers money and help out their "friends" and not the people that it actually is supposed to be use for...... I would take the money and give it back to the people and screw all the big corporations that put themselves there..... I'm glad the masses are standing up to this...... I just hope it works out at the end for them.
I would learn to play an instrument and play on the TTC for spare change... I'd be the one handing out spare change so ppl would actually listen to me!
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Not everything I post or say on foro are necesarily true facts. <- THAT is a fact! :blankstare:
Improving education. Researching alternative fuels. Nationalizing health care. Paying off the debts of the American people. iReporters have plenty of ideas about what the government should do with $700 billion, and most of them don't involve bailing out failing financial giants. Many iReporters agreed with Michael Thies, who said, "Instead of bailing these companies out, bail out the people!"
"If they want to send money, don't send it to the mismanaged companies and let them mismanage further," he said. iReport.com: Will the bailout work?
"Pay off the debts of as much of the American public as you can. And if they don't have debt, give it to them in a check. Then we can start saving for our future properly and move on." iReport.com: Bail out the people
Michele Wallace seconded the idea of giving the money directly to the American people. Her family is struggling with mortgage and car payments, and her husband lives apart from the rest of the family during the week so he can be closer to work and use less gas. iReport.com: 'I would pay off my house'
Wallace said if all her family debt was paid off, her family could live comfortably on their current income.
George Craig wants to use part of the money to increase regulation in the financial industry. That way, he said, we can avoid situations like this in the future.
"Without some stabilizing influences, the mortgage market will continue to destabilize," wrote Craig in his iReport. He included a list of several other markets that he says need more regulation, including credit cards, credit default swaps, and stock options.
Other iReporters would use the money for different government programs, such as health care and education.
"If the government is throwing around that much money to help these companies, I think they should have thrown around some money for health insurance and the people that need serious help in this country," said Nicole Sostak, who is currently uninsured. "It could ruin a person." iReport.com: 'Something has to be done about health insurance'
"Our education system is broken," said Brandon, who asked to be identified by first name due to his military affiliation.
"If the United States plans on remaining a superpower, then we'd better act and act quickly on the state of our up-and-coming generations."
And Katherine Taheri proposed a unique solution that could raise revenue while letting Americans choose whether or not to participate in the bailout. She thinks the federal government should create a "financial bailout bond."
"I don't know the details of how bonds work, but it seems to me that this would give the opportunity for the treasury to regain the money it loses," she said. "Then those that support the bailout can really support it, and those that don't do not have to contribute."
"I could use a bailout too!" added Taheri, who owns an Irish pub in Cartersville, Georgia. "The last thing I want to hear is that a way to save money is to not go out to eat so much."