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Market euphoria greets Geithner plan

Posted on March 24, 2009 7:32 AM
Timothy Geithner must have been practicing his delivery. Wall Street's initial reaction to the Treasury secretary's latest proposal to restore the economy was enthusiastic. Major stock indexes jumped Monday: The Dow Jones Industrial Average alone closed up nearly 500 points, a gain of just under 7%. That contrasts with a 350-point drop in the Dow Feb. 10, when Geithner last offered up major components of his ongoing attempt to restore financial stability.

His latest endeavor provided details of the long-awaited program to acquire illiquid asset pools and individual loans from lenders to clear up their balance sheets and enable them to resume lending.

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