Stocks rose today, which ended the session higher than expected. Investors were happy about the indication that the Treasury Department made about stepping in and bailing out the automakers after a $14 billion bill collapsed in the Senate.For the week, the Dow and S&P 500 ended with small losses and the Nasdaq had a slight gain.
The question of whether the $14 billion auto rescue bill would lose in the Senate caused stocks to slump on Thursday and the worries were valid. Negotiations fell through on Thursday night. Democrats, Republicans, the individual companies and the United Auto Workers union couldn't come to a compromise. However, on Friday, the White House said it would consider using some of the money set aside to help banks and Wall Street for bailing out the auto industry. The Bush administration said it could access the $700 billion bailout (Troubled Asset Recovery Program) already approved by Congress. The Treasury Department regulates TARP and it said in a statement that it was willing to use the money as a short-term solution "until Congress reconvenes and acts to address the long-term viability of the industry."
1 comment:
Looks like the rally won't lost long, the Senate has just bloacked the $14billion bail out, and GM and Chrysler are looking to the White House for help to get a piece of the financial bail out.
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