Stocks Biggest Week Ever Since 1974 and Auto Bailout Nearing
U.S. stocks gained, capping the biggest weekly advance for the Standard & Poor’s 500 Index in 34 years, on speculation that government bailouts will shore up the economy.
The S&P 500 soared by more than 12% this week, leading this week to be one of the best weekly performances ever since 1974. The Federal Reserve has already commited $800 billion in order to solve the credit crisis problem. Speculations have been around that Obama will have a package just as big passed in day one. Now as for this huge weekly gain in stocks, is the worst really passed? Have we perhaps put the huge panic on the stock market behind us, or are we going to be faced with yet more weeks of volatility ahead of us?
It appears also that the Auto Bailout is near, GM and Ford face a deadline until Dec. 2 to present Congress with a survival plan, focused specially that it will be able to repay the aid. The hearing will take place on Dec. 5 and it envolves a $25 billion bill. Votes are expected to be on the week of Dec. 8. What is going to be of these companies apperently from my point of view it does not appear that government will let them fail.
What is your intake on the auto plan soon to be released and the current economical gains in wall street?