Friday, September 19, 2008

Federally Insured

SEARCH BLOG: BANKS

All along I thought that Federally Insured referred to customers' deposits in banks. Now it turns out that it means the banks themselves.

Art Hogan, chief market strategist for Jefferies & Co., said the short-selling ban is a good short-term plan for helping the hard-hit finance companies pull out of their slump, while the plan for getting rid of mortgage-related assets is good for the markets on a long-term basis.

"The longer-term plan is sort of a central clearing house where [the banks and finance firms] can clear some of the bad debt that's hard to trade," said Hogan. "That's really been a drag on the market."

"Whether it's tangible or emotional, we're getting markets back up to where they should be," said Hogan.

On Thursday, stocks staged a late-session rally, with the Dow surging 410 points, as speculation about the government bailout swirled. - source

I'm just not sophisticated enough to understand either the present extent or the future limits of such a program... or the impact on our tax rates.

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