Stocks (Pep) Rally

Amid a sea of controversy President Obama has pushed forward with his financial recovery package. Today he released plans for the US Treasury to soak up the bank's toxic assets and auction them off in order to free up funds for loan to the private sector. This attempt to reestablish lending stability will hopefully work towards the overall goal of economic stability and recovery. Whether or not it's the government's job to fill the hole the banks have dug for themselves by participating in the sub-prime mortgage landslide is an entirely different debate. However, today's executive order coupled with reports of a brightening housing market has done wonders to boost the confidence of private investors in the US stock market. The DOW rose nearly 500 points today, a record not seen since November, up from twelve year lows seen earlier this month.

I can't help but associate the morale of the country with the ups and downs of the US stock market. Luckily, whenever the President prescribes the country one large Xanax in the form of another branch of the financial recovery plan, stocks soar and we are once again comforted by the false security blanket of financial stability. The reality is that it's going to take a lot of work to follow through on the recovery plan and a lot of time and patience before the market fully recovers. I believe that we are on the right track, but stock-induced jubilation is temporary at best. So long as the market continues to ebb and flow so will the public mania associated with its success.

Tomorrow is another day. Ben Bernanke and Tim Geithner are scheduled to appear before the House Financial Services Committee to discuss AIG operations. Asian markets are already up. Bonuses are being returned. The Senate Banking Committee is holding a hearing on bank regulation. Tomorrow is another day and anything can happen.

Annie A

Primary Source: "Dow jumps almost 500 points" by By Alexandra Twin, CNNMoney.com senior writer Last Updated: March 23, 2009: 5:49 PM ET