Art Hogan, chief market analyst at Jefferies & Co., said that there is growing hope among traders that enough House members will reconsider their vote to pass it later this week, and that early gains Tuesday are likely a reaction to the perception that the market overreacted to Monday's vote..
"We were taking the rescue plan for granted, and when it didn't pass, there had to be a reaction," said Hogan.
My Response: It seems as if the only people that will benefit from the bailout would be traders, stock brokers, and anyone in the financial district that have been hurt by the fall of Lehman, Wachovia, and AIG. I understand that the sudden drop in the stock market hurt our economy more than ever, but their managers need to find alternative solutions to save their companies rather than waiting for the government to do so. The need to see the bigger picture, which is the rate of unemployment this stock drop will effect. As said int his article, "economists are forecasting that the Labor Department will report a loss of 105,000 jobs in September in its monthly reading this Friday". Although this number doesn't seem like a big lost, imagine how this number will continue to add up throughout each coming month.
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