US Senate passes stimulus plan

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US Senate passes stimulus plan

http://www.news.com.au/heraldsun/story/0,21985,25038893-5012062,00.html
February 11, 2009 06:03am


THE US Senate has passed a $US838 billion economic stimulus plan, touching off difficult compromise negotiations with the House aimed at sending President Barack Obama a final bill this week.

Mr Obama, making a campaign-style stop in an economically hard-hit part of Florida, immediately called today's outcome "good news" and "a good start" to his bid to rescue the battered US economy.

Senators voted 61-37 to approve the package, setting the stage for talks aimed at reconciling differences between their legislation and the House of Representatives' rival $US819 billion plan.

Leaders of the Democratic majorities in both chambers have said they will work as long as it takes to get a final package to Mr Obama, who has urged lawmakers to meet a self-imposed February 16 deadline for doing so.

The Senate vote came after a small group of swing-vote senators crafted a smaller alternative to what had ballooned to a $US940 billion package, securing support from three moderate Republicans: Maine Senators Susan Collins and Olympia Snowe, and Pennsylvania Senator Arlen Specter.

Their critical support - Democrats can count on 58 votes and need them to reach the 60 votes needed to thwart parliamentary delaying tactics - may be an obstacle to making major changes to the Senate version of the legislation.

House Democratic Majority Leader Steny Hoyer said that he hoped to make changes to the Senate version, but acknowledged concerns in Congress and the Obama White House about vital Senate support "jumping ship".

Mr Hoyer also said that the House would keep at the compromise talks until there was agreement, whether or not lawmakers pass Mr Obama's self-imposed February 16 deadline for getting a final bill to his desk.

The Senate version sliced popular funding, including about $US14 billion for school construction and $US40 billion in direct aid to US states, many of which are facing painful cuts to meet legal bans on running budget deficits.

The Obama administration has said that he would like to see some of the education monies return to the bill, which blends tax cuts and government spending to battle the worst downturn since the Great Depression of the 1930s.

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Stocks Decline, Treasuries Gain on Skepticism Over Bank Rescue

By Jeff Kearns

http://www.bloomberg.com/apps/ne ... vPd8&refer=news

Feb. 10 (Bloomberg) -- U.S. stocks fell, sending the Standard & Poor’s 500 Index to its biggest drop since Barack Obama’s inauguration, while Treasuries rallied and the dollar rose on skepticism that the government’s bank rescue will work.

Bank of America Corp. and Citigroup Inc. slipped more than 16 percent after Treasury Secretary Timothy Geithner said he’s still “exploring a range of different structures” to bail out lenders. Principal Financial Group Inc. plunged 32 percent on concern the life insurer needs more capital. Alcoa Inc. slumped 11 percent after S&P cut the aluminum producer’s credit rating to the lowest investment grade. Only seven S&P 500 stocks rallied.

The S&P 500 Index dropped 5 percent to 826.81 at 3:32 p.m. in New York and lost as much as 5.3 percent, the most since Jan. 20. The Dow Jones Industrial Average decreased 387.25 points, or 4.7 percent, to 7,883.62. Ten-year Treasury notes rose, driving their yield down by 0.14 percentage point to 2.84 percent. The dollar gained 1 percent against the euro, and gold rose 2.8 percent as investors sought havens.

“Everybody is disappointed in the lack of details,” said Diane Garnick, who helps oversee $354 billion as an investment strategist at Invesco Ltd. in New York. “They came out and said, ‘We want you to believe that we’re still working on this.’ Well, we knew that last night.”

Geithner pledged up to $2 trillion in government financing for programs aimed at spurring new lending and addressing banks’ toxic assets. The plan, which he said will “take time” to bear fruit, includes limits on bank dividends and acquisitions.

‘Lack of Clarity’

The S&P 500 Financials index lost 11 percent, the most among 10 industries. Bank of America fell 19 percent to $5.56, and Citigroup retreated 16 percent to $3.30, giving them the steepest drops in the Dow average. All 30 Dow stocks fell.

“There’s still a lack of clarity,” Dan McMahon, director of equity trading at Raymond James Financial Inc. in St. Petersburg, Florida, said of Geithner’s proposal. “These are smart people and they’re supposed to have it figured out. We’ve been waiting all week and then he said nothing.”

Regional banks accounted for six of the 10 biggest drops in the S&P 500 following Geithner’s comments. Huntington Bancshares Inc., Regions Financial Corp., SunTrust Banks Inc., KeyCorp, Fifth Third Bancorp and Marshall & Ilsley Corp. lost more than 25 percent.

Principal Financial sank 32 percent to $11.64. The life insurer seeking U.S. aid said profit fell and declining values of corporate debt and mortgage-backed securities reduced capital.

‘No Panacea’

Lincoln National Corp. fell 18 percent to $14.61. The life insurer reported its first loss in six years. Moody’s Investors Service said it may downgrade the company’s credit ratings.

Stocks extended losses after Federal Reserve Chairman Ben S. Bernanke told Congress that increased liquidity from the central bank will be “no panacea” for lenders. Concerns about credit risk are still limiting willingness to offer loans, he said.

“No one has put anything on the table yet to stop the bleeding,” said Michael Nasto, the senior trader at U.S. Global Investors Inc., which manages $3.5 billion in San Antonio. “This won’t stop until someone comes up with a viable plan and we can see light at the end of the tunnel.”

Energy companies in the S&P 500 slumped 5.3 percent as crude oil fell on speculation that the bank rescue plan won’t boost the economy. Exxon Mobil Corp. was the biggest drag on the benchmark index for U.S. stocks, slipping 4.6 percent to $75.85. Crude for March delivery fell 4.8 percent to $37.66 a barrel in New York.

VIX Jumps

The benchmark index for U.S. stock options jumped to the highest since Jan. 23 as investors paid more to use options as insurance against stock-market declines. The VIX, as the Chicago Board Options Exchange Volatility Index is known, rose 8.8 percent to 47.49. The index averaged 32.65 last year.

Alcoa fell 11 percent to $7.60. The largest U.S. aluminum producer, which plunged 69 percent last year, had its long-term debt ratings cut two levels to BBB-.

Kroger Co. lost 7 percent to $21.32, and Safeway Inc. slumped 6.9 percent to $20.41. Citigroup Inc. said the biggest and third-largest U.S. grocers may engage in a price war.

Time Warner Inc. slipped 7.9 percent to $8.61. Sanford C. Bernstein & Co. said shares of the world’s largest media company are expensive compared with its peers. Time Warner was cut to “market perform” from “outperform.”

Qwest Communications International Inc. rose 3.3 percent to $3.48. The phone-service provider posted fourth-quarter profit that topped the average analyst estimate by 18 percent after trimming payrolls.

The S&P 500 has climbed 9.9 percent from an 11-year low on Nov. 20. The benchmark dropped 38 percent last year, its worst performance since the Great Depression. The S&P 500, Dow and MSCI World Index posted their steepest January declines as companies reported disappointing earnings and the U.S. economy shrank at the fastest pace in 26 years.

cooler

-380点是不是因为这个？