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• Tuesday, 16 March 2010

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• TARP Revisited as Banking Sector Battles and US Economy Continues to Weaken - 19 January 2009

Following a volatile week on Wall Street, and with the inauguration of Barack Obama as the new President of the United States right on the doorstep, analysts and investors are watching with great interest to see how the new administration will handle the distribution of the remaining $350 billion of the $700 billion set aside for TARP – the Troubled Assets Relief Program. The scheme has already been somewhat controversial with critics highlighting the fact that the $350 billion already spent has not actually been used to buy troubled assets. However, with the US government’s rescue efforts being undermined by the deepening financial crisis, federal officials are reportedly revisiting the original bailout plan, that of taking toxic assets off the balance sheets of embattled financial institutions, with the view to breathing some life back into the ailing credit market.

• New $800 Billion Bailout Initiative Aimed At Main Street Gives Investors New Hope - 26 November 2008

While many U.S. stock market players may have faced Tuesday with trepidation, thinking it unlikely that markets would experience gains for a third day in a row, the announcement by the Treasury Department and the Federal Reserve that $800 billion will be injected into the struggling U.S. economy resulted in the session ending with most major indexes reflecting slight increases. The Dow Jones industrial average closed 0.4 percent up and the Standard & Poor’s 500 index climbed 0.7 percent, however, the Nasdaq Composite dropped 0.5 percent. The Dow may have gained 12.3 percent over the past three sessions, but remains down 36.1 percent for 2008.

• Disappointing Commerce Department and Federal Reserve Reports Have Negative Impact On Markets - 16 October 2008

Wednesday’s performance on U.S. stock markets, and global markets for that matter, is likely to have squashed any feelings of optimism that Monday’s market rally may have brought about. The Dow Jones industrial average fell 7.9 percent to close at 8,577, while the Nasdaq composite index lost 8.5 percent, and the Standard & Poor’s 500 dropped 9 percent. This tale of woe was echoed throughout the world, with London and Paris markets dropping around 7 percent, the German DAX falling 6.49 percent, and Asian and Pacific stock markets all recording losses.

• Dramatic Market Rebound a Welcome Start to the Week as Bailout Strategies Are Fine-Tuned - 14 October 2008

No doubt driven by the news that governments around the world are taking unprecedented action to bolster the financial sector, Monday saw Wall Street record its most phenomenal bounce back since the 1930s, with major stock markets around the world enjoying similar positive results. Following one of the worst trading weeks ever, the rally was welcomed with elation by stock market players. While not wanting to put a dampener on the high spirits of investors, the question on the minds of many is likely to be: "Is this going to last?" Given the volatility of the market in recent months, the answer to that is anybody’s guess.

• Emergency Measures by Fed Hope to Boost Market Confidence - 7 October 2008

Before the day even began, stock market players knew that Monday was going to present enormous challenges. With unanswered questions as to how the $700 billion financial sector bailout plan would be put into action, and how quickly the economy would see any benefit from it, Monday proved to be a rocky road for U.S. markets, and global markets did not fare any better. News of European financial institutions Hypo Real Estate AG and Fortis NV having to be rescued, only served to make a bad situation worse, as did the ongoing speculation that authorities in Europe are setting up a bailout package of their own.

• Air of Pessimism Likely to Persist Despite Approval of Revised $700 Billion Bailout - 6 October 2008

Following almost two weeks of intense debate, the revised $700 billion financial sector bailout plan was passed by the U.S. House of Representatives, with President George W. Bush signing the bill into law on Friday. With unanswered questions regarding the implementation of the plan and many questioning its potential effectiveness, analysts are doubtful that the plan’s approval will lift the cloud of pessimism hanging over the stock markets, at least in the short term.

• Senate-Approved Bailout Plan Heads for House Vote - 2 October 2008

Following more than three hours of floor debate on Wednesday night, the Senate passed a revised version of the controversial $700 billion financial sector bailout plan, by a vote of 74 to 25. Both Presidential candidates, Senator John McCain and Senator Barack Obama, voted in favor of the plan that the House of Representatives must approve before it can be put into action. It is anticipated that the House will vote on Friday and proponents of the plan are optimistic that the vote will go their way.

• U.S. Markets Rebound on Hopes of Revised Bailout Plan Success - 1 October 2008

While global financial markets continued to fluctuate on Tuesday, U.S. markets rose substantially, gaining back roughly half of Monday’s enormous losses. Analysts believe that this rebound is due in part to expectations that, before the end of the week, Congress will push through a revised bailout plan. These expectations were strengthened when both Presidential candidates made it clear that they are in favor of the U.S. government’s efforts to rescue the financial sector, while President Bush confirmed that Monday’s defeat was by no means the end of the legislative process. Bargain hunters stepping in to take advantage of Monday’s dramatic decline, no doubt also contributed to Tuesday’s improved market performance.

• Is Multi Billion Dollar Bailout Plan On A Rocky Road To Nowhere? - 26 September 2008

With the Bush Administration’s $700 billion financial sector bailout plan dominating news headlines, and authorities seemingly unable to reach an agreement, the stock markets continue to be tossed about on a turbulent sea of uncertainties. Thursday saw a slight market rally, with investors cautiously optimistic that the bailout plan would be approved on Thursday, and put into action in the very near future. Indeed, at one stage on Thursday it did appear that an agreement had been reached, but then, once again, the wheels fell off, squashing any hope of an early resolution.