Stocks Slip As House Passes New Version of Stimulus Bill
Even as the House of Representatives passes the economic stimulus bill negotiated between the two Houses of Congress, the stock market is slipping. As might have been foreseen, despite all the things that the Democrats did to try and placate Republicans, not a single one of them voted for the measure. The measure was always going to pass, since Democrats have enough to ram it through, and just enough Republicans in the Senate are likely to help is pass there.
In any case, after enjoying some gains today, the stock market is slipping into negative terrority as the last hour of trading begins. Yesterday’s late rally, on the news that mortgage subsidies may be used to help prevent foreclosures, has dissipated. Only the Nasdaq is managing to hold onto to its gains — but barely.
The economic stimulus bill itself is widely thought to be inadequate in addressing the concerns of the economy. However, other economic stimulus measures have largely carried stocks through the day:
- The aforementioned mortgage subsidies, which could help borrowers in trouble before they start missing payments. (Also along with this, a number of mortgage lenders have agreed to halt foreclosures.)
- Talk of more capital infusions for U.S. banks is creating some optimism in the financial sector. There is hope that the government will continue to buoy banks up. And, if the other economic stimulus measures work, the banks may not “need” as much money.
- The G7 Meeting underway in Rome may actually help the economy –if world leaders can agree on a course of action.
In any case, with all of these measures, it’s hard to imagine that economic stimulus won’t happen. Which means the time to buy stocks is now — while they are a great bargain.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
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