Thursday, September 18, 2008

Wall Street Closes Up More Than 400

The roller coaster ride that is the stock market this week took a turn for the better today. It was a stunning late-session turnaround Thursday, with the Dow Jones industrials up more than 400 points after a report that the federal government might create an entity that will take over banks' bad debt. The rumor, first reported on CNBC, said Treasury Secretary Henry Paulson was considering an old idea to battle the economic problems this nation is facing. Paulson's idea is to form an entity very similar to the Resolution Trust Corp. This entity was set up after the failure of savings and loan banks in the 1980s, and was fairly succesful in dealng with that economic crisis.

If an RTC was to be created it would be set-up to acquire the bad or risky real estate debt that has hobbled financial institutions and led to the intense volatility in the markets this week. Personally I think this is a good idea, and I have to wonder what would this nation be like if Bush had hired competent people from the beginning.

Seriously, look at Bush's second term hires compared to his first. Gates, Paulson, Bernanke, they actually are competent, and may help this nation sail through the mess that the Republicans gave us.

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