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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (60023)	2/25/2009 12:06:39 AM
From: Hope Praytochange	2 Recommendations Respond to of 224729

Bernanke Helps Stocks Snap Back: where are taxcheater and watermelonchamelon ??? By PETER A. MCKAY and GEOFFREY ROGOW Bank stocks soared, leading the broader market higher Tuesday after Federal Reserve Chairman Ben Bernanke made the stongest comments yet against nationalizing major Wall Street firms. The Dow Jones Industrial Average, which slid nearly 251 points on Monday, climbed 236.16 points, or 3.3%, to end at 7350.94. The S&P 5000 climbed 29.81 points, or 4%, to 773.14, boosted by a 12% surge in its financial sector. Monday, the Dow and the S&P closed at their lowest in more than 11 years. The banking sector bounced after Mr. Bernanke said the nationalization of major U.S. banks isn't needed to ensure their viability. "I don't see any reason to destroy the franchise value or to create the huge legal uncertainties of trying to formally nationalize a bank when that just isn't necessary," Mr. Bernanke told the Senate Banking Committee. Citigroup and Bank of America, which saw their shares pummeled last week amid speculation about possible government takeovers, gained 22% and 21%, respectively, and helped spark a broad rally in the financial sector. J.P. Morgan Chase, which said on Monday it would cut its dividend 87% to preserve capital, surged 7.7%. The nationalization question has gripped markets recently, with traders fearing full-blown federal takeovers of big banks that would wipe out shareholders and leave lending decisions in the hands of government officials. Obama administration officials and bank executives had sought to shoot down the speculation about nationalization recently and met with little success. But Mr. Bernanke's remarks appeared to convince the market, if only temporarily, that lenders like Bank of America and Citigroup will remain in private hands. Traders welcomed the gains but remained on guard against a possible renewed round of selling. Since a full-blown crisis erupted on Wall Street and in the broader economy last fall, durable low-water marks have been difficult to find in the Dow and other major indexes. "I feel better now than a did three weeks ago, but this is still a bottoming process that's playing out," said Anthony Conroy, head trader at BNY ConvergEx, a New York brokerage. "If we had just shot from 7500 to 8500, that would have clearly been a bull rally in a bear market. It's actually good that we've tested [the bottom] a few times now, but we should still consider this a bear market." With stocks on the rise, other riskier assets such as crude-oil and metals moved higher. Gold futures dropped $25.50 an ounce, or 2.56% to $969.10. Treasurys declined. "Right now, the world has become bifurcated where you've got U.S. Treasurys and then you've got everything else which is risky," said Russ Koesterich, head of investment strategy for Barclays Global Investors. "All riskier investments don't usually move together, but they will as long as you have this kind of fear." [Stocks] Associated Press Home Depot was another big bright spot among the Dow stocks, rising 11% following a strong earnings report that raised traders' hopes about consumer spending. The consumer-discretionary sector of the S&P 500 was up about 2.8% recently. Home Depot and other outlets have struggled as the housing market cratered. A report Tuesday showed the widely followed S&P/Case-Shiller National Home Price index, which covers all nine U.S. census divisions, fell 18% in the fourth quarter from a year earlier, the largest decline in the measure's 21-year history. The technology-oriented Nasdaq Composite Index rose 54.11 points, or 3.9%, to 1441.83. Shares of chip maker Intel, also a component of the Dow, jumped 5.4%. President Obama will address a joint session of Congress on Tuesday evening. Investors are keen to hear more details on the administration's plans to aid the financial sector and struggling homeowners. Traders have criticized the Obama administration's initiatives so far as vague. "For the time being, you have some fear and hesitation [among investors] to jump back into the pool," while key questions remain unresolved about the banking system, said Andrew Frankel, co-president of Stuart Frankel & Co. Overseas, shares in Europe ended lower after a key German business sentiment gauge slipped to a record low in February. Asian shares sank after the plunge in the U.S. on Monday spooked investors. The Nikkei 225 ended 1.5% lower. —Annelena Lobb and Kelly Nolan contributed to this article Write to Peter A. McKay at peter.mckay@wsj.com and Geoffrey Rogow at geoffrey.rogow@dowjones.com

To: Kenneth E. Phillipps who wrote (60023)	2/25/2009 12:45:30 AM
From: Hope Praytochange	2 Recommendations Respond to of 224729

OBAMA: "We have launched a housing plan that will help responsible families facing the threat of foreclosure lower their monthly payments and refinance their mortgages. It's a plan that won't help speculators or that neighbor down the street who bought a house he could never hope to afford, but it will help millions of Americans who are struggling with declining home values." THE FACTS: If the administration has come up with a way to ensure money does not go to home buyers who used bad judgment, it hasn't announced it. Defending the program Tuesday at a Senate hearing, Federal Reserve Chairman Ben Bernanke said it's important to save some of those people for the greater good. He likened it to calling the fire department to put out a blaze caused by someone smoking in bed. "I think the smart way to deal with a situation like that is to put out the fire, save him from his own consequences of his own action but then, going forward, enact penalties and set tougher rules about smoking in bed." Similarly, the head of the Federal Deposit Insurance Corp. suggested this month it's not likely aid will be denied to all homeowners who overstated their income or assets to get a mortgage they couldn't afford. "I think it's just simply impractical to try to do a forensic analysis of each and every one of these delinquent loans," Sheila Bair told National Public Radio. Click for related content Promises Made: Check Obama's previous comments on issues OBAMA: "We have already identified $2 trillion in savings over the next decade." THE FACTS: Although 10-year projections are common in government, they don't mean much. And at times, they are a way for a president to pass on the most painful steps to his successor, by putting off big tax increases or spending cuts until someone else is in the White House. Video Obama reassures America Feb. 24: Newsweek’s Howard Fineman talks about the key highlights of President Barack Obama’s speech to Congress and his promise that the economy will get better. Countdown Obama only has a real say on spending during the four years of his term. He may not be president after that and he certainly won't be 10 years from now. OBAMA: "Regulations were gutted for the sake of a quick profit at the expense of a healthy market. People bought homes they knew they couldn't afford from banks and lenders who pushed those bad loans anyway. And all the while, critical debates and difficult decisions were put off for some other time on some other day." THE FACTS: This may be so, but it isn't only Republicans who pushed for deregulation of the financial industries. The Clinton administration championed an easing of banking regulations, including legislation that ended the barrier between regular banks and Wall Street banks. That led to a deregulation that kept regular banks under tight federal regulation but extended lax regulation of Wall Street banks. Clinton Treasury Secretary Robert Rubin, later an economic adviser to candidate Obama, was in the forefront in pushing for this deregulation.