As Nancy Pelosi suggest a second financial suport plan of +/- $1 trillion USD is not out of the question, we need to stand behind our American investors, banks and finacial institutions if we (Americans) are to continue being the number one economic global leader, timing is everything during this financial crises.

Richard Kennedy
Kalispell, MT

I am happy of this rally, but also am not sure all its finished here.

It will mean the previous one year market changes were only a bad dream that in one day have dissolved.

Simply we wake up from one night sleep and its again business as usual ???

I dont know how will evolve . But still not feel confident to rent my money to one or oneother bank.

Smoke and mirrors, more of the same, shoved down our throats by the same crooks with the big push by our "free"press.
No change to the core problems.

Ok, let me get this straight. The US Treasury paints a gloom and doom picture on the US financial system, claiming if the congress does not approve a $700bn bailout package giving him Secretary Henry Paulson complete and unquestioned authority to buy assets from distressed financial institutions game is over. So without debate it passes. We are now weeks away from that. Henry Paulson is yet to purchase any distressed assets from troubled institutions claiming it will take a few weeks to "get it right". Yet, today we see he is now using $250bn of this money to buy equity stakes in the 9 MOST HEALTHY BANKS in the USA., This capital injection was MANDATORY, none of the banks were allowed to refuse public funds. Nothing yet to go to banks that need capital injections. Doesn't this disturb anyone just a little bit?

Most of those who have shown their incompetence are stil in charge all ower the world !.

The more the government messes with the market and the economy, the worse it is going to eventually crash. This is a natural cycle. Let it happen and quit messing with it.

Jim Headley
Gering, Nebraska

American economic leadership?

America tried to steem the market crash. The market takes the largest point drops in history.

India and China promiss to help world markets. The markets stop their plunge.

Old Europe defines a rescue plan that the American Nobel price taking Economist defines as the right solution. World markets rally.

Who cares about the latest rescue plan from America? There is no trust in the American goverment in the rest if the world anymore, abused through 8 years violating every single agreement ever made.

The elephant in the room is being ignored: for the best part of two decades the USA, UK and others have lived beyond their means by way of the biggest pyramid scheme in history. None of the countries involved in this can afford the bailout as none has a PRODUCTIVE sector robust enough to fall back on. So sticking a couple of trillion dollars into economies to stimulate them – so that they can go back to lending people money who can't afford to pay it back unless the economy is being artificially stimulated by keeping people spending (thereby increasing their debt) – is doomed to failure. A rise in the oil price and the knock on effect that had on food and other basics was all it took to bring the whole thing down like a deck of cards. You don't wean a junkie by injecting him with heroin – why should it work for failed financial systems?

Thanks for the warning!' I think you should make it a headline not a blog title.

Nothing has really changed so far. Crooks are still running the show. They still control and possess the money and they very well know they can't be trusted. That's why they didn't lend each other in the first place.

Now all of a sudden everything is fine. What a joke.

Beware of the inflation! This is how poverty will strike the world, invest in paper and ink companies, governments will need a lot of them :)

Now that these liquidity "Buffers" from all world governments seem to be in place (and therefore sounds nice) – We have to calculate what happens when you throw all your economic wealth into one corner, ie bailing out – what could be worthless banking institutions. hmmm once the panic freaks digest that ........ it could be cause for another "Bear" reaction. I suspect "volatility" may be the natural order for some months. Yes, its good that governments have rallied together to stem the tide, but now we have to place a certain amount of trust in the conduct of banks that got us into this mess in the first place. That makes me rather cynical about the inevitable outcome.

Explain this to me, a mere layman. the US and European governments are creating more debt (by borrowing from taxpayers) to pay other more pressing debts. Interest rates are being lowered to inject 'much needed' liquidity into the markets so that the banks can carry on lending (and thereby create more debt). And the politicians are insisting that they are committed to keeping taxes low. So the debt the mountain just gets bigger. Excuse me, but who is actually going to repay this debt, and when? No one seems to be taking refuge in reality. Don't ask me, I'm just a psychiatrist who is struggling to understand this madness...

DONT even think about celebrating this so called bail-out to banks & financial institutions this is just phase one of a very serious situation,what will follow will be hyper-inflation, high unemployment and the cost of oil reaching a knee wobbling $200 a barrel by February 2009.and whats left of the US auto & airline industries wont be worth talking about !!

This is so much fun! Let's shore up the economy with money we don't have. While we're at it we should invade a few more countries too. Never mind education, healthcare or sustainable energy. Those math and economic classes clearly never helped anyway. "More militerry. Less skools."

Than you CNN for ongoing and relevant coverage of what matters! I really appreciate that governments around the world are easing the global economic crisis with bailouts, limited buyouts of shares, and in all have promised over a trillion dollar! Great – stock market values are soaring as investors get back in, everything looks promising.

Question – where are these funds coming from? We have seen our brtilliant neighbour, Bob Mugabe, print more and more currency until it is mere wallpaper and Zimbabwe's inflation over 2 million percent – are the injections by goverments not similar? Are we headed to great inflation, globally great?

If there is a cure which should work to heal the global financial system I am wondering how come that all decision makers or financial gurus did not try at least to prevent the catastrophe we are witnessing. Billions of USD or other currency given to people guilty of easy lending and mismanagement. Expert who talk about toxic debts and not talk about what used to be a wrong assessment of the credit worhtiness and risk of defaults of credit given without any sort of collaterals. I wonder if any of the tycoon which were so active in acquisitions in recent years will be affected by the present credit crunch and probably future recession which will last for years.

Europeans came up with the "brilliant" idea of issuing CDS to their banks. If you do read correctly what has been announced, they are going to guarantee their banks future loans against payment defaults, by charging them fees for 5 years. They are buying time, hoping that compensation (clearing) of the existing CDS, MBS etc... will actually result in much lower amounts. What will be left will have to be financed by borrowing money that will have to be paid by European taxpayers.

I am sorry to say that it is just another DEAD CAT BOUNCING
This time no more spare lives and a broken rope

Just like us, future generations will make mistakes over and over again. Seems to me we have learned few from earlier mess-ups

All we can do is pick up the pieces
Get on with your life, make it a good one
and SAVE THE PUPPIES !

It is the quadrillion dollar powder keg waiting to blow ...

How wrong can you be? It was short covering. There are no investors involved.

After seeing the incredible events that have transpired in the "Global Economy" over the past 2 months or so, one has to arrive at one of 2 logical conclusions:

1) Either our Government leaders (America and Overseas) are suddenly & coincidentally all completely incapable of understanding and properly managing simple key economic indicators, institutions and their impacts upon the wealth of nations resulting in this economic "crisis" that could bring down the entire financial system world-wide, if that damn bail out bill isn't passed and nationalizing banks world-wide isn't completed. Does anyone fully understand the collective level of pure ignorance and incompetance this would require?

or,

2) This is all a conspiracy by an insider elite power-hungry group, creating a "crisis" through careful long-term planning & utilizing the ignorant masses to do their bidding, then presenting a "solution" to the "crisis" at hand that naturally & eventually permanantly destroys free-market freedoms in exchange for a supposed "fix" to the problem at hand, thereby trading freedoms for supposed government security. The insiders desiring more centralization/merging of the governmental and financial systems of the world in order to further consolidate power as part of a "New World Order". A new socialist world order with power and wealth at the top, no middle class, with the huddled hungry masses, remniscient of "old Europe" Feudalism/Monarchies (what we in America escaped from), with the peasents serving their masters at the top.

Even if you don't beleive the conspiracy option, believing the incompetant leader option instead, why would you trust incompetent leaders to fix a problem they created? In either case, letting the markets sorts it out without any government intervention is the only solution that makes sense and avoids the pitfalls of either option above.

@ Bill
>>Nothing yet to go to banks that need capital injections.
>>Doesn’t this disturb anyone just a little bit?

Bill, this should only disturb people who thought that the 700 billion dollars would actually be used to halp people.

But if you make the former CEO of Goldman Sach the Secretary of Finance, no taxpayers money is going to the people. It's going to the banking friends of Henry Paulson and to no one else. It's the biggest hold-up in the history of man kind.

After Bush gave billions and billions of dollars to his military friends with the "or else..." thread, now the banking guys pass demand their cheques "or else...".

Guess what, folks! The fun has just started! Why is it that nobody seems to want to discuss Social Security also being bankrupt? Imagine the US having a disproportionately large "mature" population with no income at all in the near future! Also imagine the "working population" trying to compete with the Chinese for jobs that have all relocated to China. Has anyone seriously not seen that America has lost its ability to compete in industry?

After the subprime crisis, the next whammy is the recession and unemployment.

Scratch my back and i'll scratch yours. Bail me out at time of crisis and i'll also bail you out. Suppose i bail you out and you fail to recover while at the same time i exhaust my bail-out resouces, where do we go next? May be to Robert Mugabe whose dollars come in high denominations that can never be exhausted in any bail-out project.

The present market problems are not caused by a confidence
crisis. The stock market crash of 1929 was cuased by investors buying on margin. Today it was announced that investment companies were buying on leverage that is 30 to 1. If I remember
correctly there are laws on buying stocks on margin. In 1929
the margin was no where near today's leverage buying. Many of these
brokers probably should be investigated for securities fraud.

Credit and confidence is not the primary problem. Leverage buying
will be the killer.

I think we must not be carried away by an illussive stock market rally.I don't even think that dreamed rally will happen anytime soon.
Instead of wishing for something that will not happen given the disastrous state of the world economy. I think we must be more concerned making radical reforms in the entire worlf financial system.
The illussive rallys we seem to see are nothing but a sign of a dieing system defective as it is trying to stay on it's feet.

Sounds like it's about time for a good old-fashioned TAX REVOLT!!!!

Why keep paying Federal income taxes while they're already stealing us blind?!

April 15, 2009 = IRS, kiss my a$$!!!

There were numerous rallies from 1929-1932 and the long term bottom.

Please don't talk about TAX REVOLT without mentioning the aim. Think of the poor government having all that astronomical debt + bail outs – all based on confidence in YOUR paying the taxes.

Can the World believe that this new Bush/Brown policy – taxpayer bailout of banks in order to create liquidity in the market – will succeed & and how do you measure it's success in terms of a timeline? World governments must have invested many $trillions which could have been used for what the taxes were budgeted for – infrastructure, health care etc. Here in Africa a fraction of 1% of that could have solved much of the continents poverty. Now that's gone and there is no guarantee that this crisis will not increase. I hope that the "experts" have thought this through from all perspectives and don't say in a years time – "at the time this was the best thing to do..."

Politics affect money markets everywhere, today CNN poll shows the Democratic candidate leading with 9 points; If Obama is elected early next month, the many believers of Obama would come back to invest and the stocks would go up, meaning bonds, trusts and bank loans would go up, putting the Dollar in circulation again. Though the question nags, will Obama equal the change he is talking to reflect on the economy, with no more bail-outs? I pray he will, and no more Iraq kinda wars to dent the economy again!!

The subprime mortgage and financial crises are attributed to American speculators' greed and irresponsibility. Global economic recession has broken out. More and more SMEs are going bankrupt. Unprecedented economic woes in the world are killing millions of poor people.