Dow wavers after House passes “rescue plan”
October 3, 2008 by Tisa Silver
Filed under Finance
The highly anticipated bailout rescue plan was passed by the House of Representatives.
The new, sweetened deal includes some health care provisions, tax breaks for kids’ wooden arrow manufacturers, rum producers, and an increase to FDIC protection for bank accounts.
When the House was preparing to vote on the new bill, the Dow was up over 270 points. But, after news of the bill’s passing hit the street, the Dow gave back over 150 points worth of the gain. Why?
Well, everyone knew some form of a bailout bill would be passed and investors traded on that optimism. Now, instead of asking whether or not it will pass, maybe people are starting to ask the real question: what will it accomplish?
The truth is no one knows. So, get used to the zig zagging charts and triple-digit swings!
