History was Made with The DOW With a 416 Point Jump

Los Angeles Times Article

You might have seen on the news that the DOW made record breaking 416 point increase. The reason for it was that Uncle Sam decided to get off of the sidelines and invested 200 Billion Dollars in Treasury Securites to bail-out and help the mortgage industry for the credit crunch. The other fact is that the US isn't the only country getting involved in this opportunity to build on from this.  France's Great Britian, Japan, and Canadian investors jump into the mix to buy into this bail out.   

What does this mean to consumers?   

This is a sign that the economy is going to make a shift in direction. The Mortgage industry is just one part where Uncle Sam will help with this move. By reducing rates and helping banks take bad debt off their books, banks will loosen the purse strings and then will resume loan money, which will increase consumer buying power, which will start the recovery to this "Recession-like atmosphere".   

Will this plan last forever?  

The answer is NO. There will be only so much bad debt that  200 Billion dollars will eat up. 200 Billion Dollars will provide a ton of benefit for our economy by starting a buying economy, however eventually, rates will come back. What goes up, comes down. Same concept, What goes down, evenually comes back up.   

How can Joe and Jane Consumer capitalize on this window of opportunity?  

If you have a home for sale, there will be more buyers that will be able to buy your property.  

If you are buying property, start getting pre-approved and start bargain Home Hunting. Inventory is high and rates down, its your time to make a move.   

Your bank will be making attempts to refinance your home, look into it. Its a simple calculation problem. If it makes money sense, you should be jumping all over it.      

Investments are a huge way to make a profit from this change in the market. For Example, if you have Washington Mutual stock, yesterday, your stock increased in value by 18%. Just think, if you have $100,000 in WaMU stock, you made $18,000 in one afternoon. Thats Huge!!!

Well I hope I gave you valuable information today.