Congress and the Fed seem to be wiggling around, using a day’s worth of stock market activity to tell them how and when to “invest” $700,000,000,000. I guess that the chart broke through a price resistance barrier on the downside and signaled a buy to our duly elected day-traders.
The “bailout,” if done honestly, will use borrowed money. That raises an interesting question: What happens if the market value of the “troubled assets” goes down? Does that mean that Congress will get a margin call?