The bailout is law

The historic 700 billion dollar bailout plan for Wall Street is officially approved. Within hours after the House voted in favor of the bill yesterday, President Bush signed it into law. But not too many on Wall Street seemed to be impressed by the result of the vote. Yet again, Wall Street closed lower than on Monday when the original proposal failed and the Dow Jones fell 777 points within one day.

One of the reasons for the lack of improvement might have been the release of new unemployment figures. The Labor Department states that employers cut another 159,000 jobs in September. We can only hope that the bailout bill will stimulate the economy enough to change the continuing downturn. But hopes are not very high, especially because the unemployment rate is traditionally higher in winter months. We will have to wait and watch if the bailout plan can give a boost to the ailing economy. Stay tuned…

Katherine