So Dow closes +141 today...

[msallied]

Is this something of a rally? I'd say this isn't great news, exactly. The headlines didn't really reflect any sort of real recovery, since AIG's fate is still worrisome. Any thoughts?

[WeDidIt]

1. It rose late in the day on rumors the Fed would bail out AIG

If it's revealed there will be no federal bailout of AIG, expect it to take about a $200 dump.

[msallied]

2. I don't see any other way to bail them out...

It would take a mean pool of rich guys to pull them out of the hole they're in.

[abumbyanyothername]

3. Why would the fed bailout AIG?

My magic 8-ball sez:

"All signs point to JPM."

If JP Morgan says that if AIG goes bk, they will follow (due to counterparty exposure on derivative contracts), the fed will squeal like Ned Beatty in Deliverance.

[Yavin4]

5. To Delay The Inevitable Until After The Election

And by doing so, the damage will be even worse.

[WeDidIt]

7. Yup yup

But bailing out is putting a nasty taste in the voters' mouths, too.

[Spider Jerusalem]

4. +141 today, -500 yesterday

overall down 360 for the week, and Dow futures trading well below close at the moment; not a rally.

[msallied]

6. I worry about knee-jerk media reactions

Like "Hey! Look! We're coming back! It was only one bad day!"

Ugh.

[doublethink]

8. 85 Billion Govt bailout ..... just about a done deal just reported.

bridge loan ..... breaking
http://www.reuters.com/article/businessNews/idUSN1640428920080916

[Ichingcarpenter]

10. 157 Billion included the Layman's loan and the bank loans n/t

[doublethink]

12. Yep ....... and the AIG bridge loan just confirmed NY Times ....

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3493406

[msallied]

11. So if I understand this right...

This is only going to keep them afloat long enough to liquidate their stuff? Are they going to be protected from bankruptcy then?

I'm sorry to sound so ignorant. I just want to make sure I understand this right. Econ is not my strongest subject, but I'm trying to build my knowledge. lol

[doublethink]

15. More on it in this thread ....... not all the details on it out there yet ....

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3493406

[abumbyanyothername]

13. This bridge loan is definitely not a good sign

Just when the Fed had drawn the line in the sand, they are forced to step back.

Everyone anywhere that has uninsured bank deposits -- in ANY bank -- should move them.

Although I highly doubt that the FDIC is solvent either.

[Bread and Circus]

9. Don't worry about the "Dow", It will go up and it will go down. The fundamentals

of the economy are flawed, from harder to get oil to irresponsible deregulation. There's a lot that needs to be done, and Obama needs to hammer it.

However, worrying about the Dow is useless.

[msallied]

14. I fundamentally agree with you. lol

The thing is, though, so many people look to the Dow to get a pulse on things. I want to make sure that this isn't going to be spun as a "blip." We have some serious problems going on and I don't want people to take their eyes off the ball.

[lapfog_1]

16. And yet it's only a bit above the "disaster floor" of 11,000.

Expect some news tonight about AIG bailout. If it doesn't happen, that 500 point loss will seem like kindergarten. If it does... well, it's another bandage, hope it works.

[Motown_Johnny]

17. A I G bail out

[BlueIdaho]

18. How much money has the Fed pumped into the market TODAY?

70 BILLION dollars. Think that could have had a short term effect?