A government bailout of Citigroup (C) caused stocks to rally this morning, giving a bit of life to financial exchange traded funds (ETFs). The major indexes have been up and the hope is that this will also help alleviate some of the troubles within the housing sector.
Investors are feeling a bit empowered after the $20 billion shot in Citigroup’s arm and the $306 billion guarantee for risky assets, reports Tim Paradis for Associated Press. Had Citigroup’s share price remained below the key $5 mark, it could have led to a new wave of selling.
Obama has also chosen his financial team and given some hope to the markets, calling in another economic stimulus.
His plan targets saving or creating 2.5 million jobs during the next two years. Any plan is expected to exceed the $175 billion Obama proposed during the campaign.
- iShares Dow Jones U.S. Financial Sector Index Fund (IYF): down 61.7% year-to-date; Citigroup is 4.8%