The futures sure love it
Briefly: a "bad debt rescue plan" is pitched as something that "may" cost "up to" half a trillion-with-a-T dollars. It'll be more than that. There is also now a ban, albeit temporary, on shorting financials stocks. Marketwatch has an early AM bulletin: "FED TAKING NEW LIQUIDITY MEASURES, INCLUDING BUYING FANNIE AND FREDDIE DEBT" but no story; there is a short story on loans to prop up the money-market sector. Whup, a new one: oh look, they're guaranteeing them now - so much for all those little disclaimers on commercials about risk. The TED spread has dropped to 229 after spiking to a record 314, a massive drop; Dow futures are up 370 points. And the dollar is rallying.
But the Fed is still having severe trouble trying to reach its target rate, and had to float some 0% overnight loans to come close.
Also, it's kind of too damn hot in this room to sleep well. Foo.