The government’s rejection of the $700 billion bailout plan came as a shock on Monday, causing the Dow Jones to plunge in the single largest loss in its history. The Senate is set to vote tonight on a revised rescue plan, which includes increasing FDIC insurance of accounts from $100,000 to $250,000.
Interest rates have increased steadily by approximately .375% in rate since Monday morning as the uncertainty remains. If the Senate does not come to agreement tonight, this will probably not bode well for the Stock Market or for Mortgage Bonds.
Interestingly enough, the very first draft of the bailout request was a 3-page, triple-spaced document. It is now up to 109 pages. Here’s an excellent and succinct summary of the proposed plan:
