The DOW isn’t what people need to be watching here.
Opening up of credit is the key thing. Last week GE had to pay Buffet an interest rate of 10% plus future valuable stock warrants to borrow money. If GE’s paying 10%+, think of what your local small business person might have to pay this week.
I didn’t agree that this particular bailout plan was the way to go, but somehow massive intervention was/is needed to open up the credit markets.
I have heard several folks credit lines have double to 10% in the past week...that must be the new rate for now. Also, they had their limits cut in half.
Any idea why mortgage rates are falling and companies like Ditech are still advertising non-stop nationally telling us this is a great time to get a loan? Why loan money out at 6% if you can get 10% instead?