The Dow Jones shot up nearly 4% before the close on Thursday after speculation surfaced the US Government is planning one of the largest financial interventions since the Great Depression.
It is believed the US Treasury is working to create a vehicle which would take the billions worth of bad assets off the balance sheets of financial companies. The plan would restore much needed confidence in the large US financials institutions, hammered in recent days following Lehman Brothers’ collapse and the AIG rescue. Another rumored proposal to stem the market exodus is to insure investments in mutual funds, similar to the security for cash depositors. The Dow Jones IA closed 410.03 points ahead yesterday to 11019.69, with financials AIG, Citigroup and JPMorgan Chase leading th...
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