Anticipation

Today Paulson will talk to the Senate Banking Committee. Wall Street and the world's markets will be listening intently. His words will literally affect the Wall Street's closing numbers today. Investors will buy into what he says or not.

My guess, and its just a guess, is that the initial response will be positive and we will see a little boost, but in short time his proposals will be analyzed and its real value will be ascertained. Then we might see another dip.

It needs to be pointed out that in addition to the mortgage bad debt crisis, the world is headed towards recession full bore. There is a slowdown. Where have we read that a $700billion bail out will dissolve the recession.

Reuters: Stocks, oil fall; eyes on Paulson

Initial exuberance about the plan to buy up toxic mortgage debt has given way to concerns about how the U.S. government would fund it and whether the package would be enough to boost the world's biggest economy, which is facing a recession.

...Germany, the region's biggest economy, edged into contraction in September for the first time since January and manufacturing industry slumped to its weakest performance in over five years.