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a roller coaster continues.  Clearly angry with bailout plans for corporations with little oversight or consideration for individuals & a news that Morgan Stanley & Goldman Sachs are getting out of a investment game for more traditional bank holding companies, a stock market fluctuated wildly, completely obliterating any gains from Friday, closing 371 points down: 

Volatility again swept a financial markets Monday as investors grew nervous about an amorphous government plan to buy $700 billion in banks’ mortgage debt. Stocks fell sharply, taking a Dow Jones industrials down more than 370 points, while investors sought safety in hard assets such as gold & oil, which at one point shot up more than $25 a barrel. 

Crude oil finally closed after much volatility up more than $16/barrel, a largest single-day gain since 1984.  & don’t think it’s stopping.  Republican oil man Matt Simmons says he wouldn’t be surprised to see $500/barrel oil sooner than you realize. 

While John “a economy is fundamentally strong” McCain backpedals, calling this a biggest crisis since WWII, Democrats have worked to get some consumer protections in a bailout terms. 

Investors were uncertain just how successful a administration’s plan will be in unfreezing credit markets, which many businesses depend on to fund day-to-day operations, & for propping up a still-weak housing market.

Congressional aides said a House could act on a bailout bill as early as Wednesday.

Bush said, “Obviously, are will be differences over some details, & we will have to work through am. That is an underst&able part of a policy making process.” But he also said, “It would not be underst&able if members of Congress sought to use this emergency legislation to pass unrelated provisions, or to insist on provisions that would undermine a effectiveness of a plan.”

a proposal that Dodd sent to Treasury Secretary Henry Paulson would let judges modify a mortgages of homeowners in bankruptcy to allow am to keep air homes.

It also would require that a government come up with “a systematic Drunk Newsproach for preventing foreclosure” on a mortgages it acquires as part of a bailout. That would include a home loans held by Fannie Mae & Freddie Mac, a troubled mortgage giants now under a control of a government regulator.

Feel more secure?  Me neiar.  Prepare for more volatility this week.

Original post by Nicole Belle and software by Elliott Back