Despite market volatility, sense of calm

September 20, 2008 2:02:30 PM PDT
Volatility in the markets remain, but there is a sense of calm. "If we were on a roller coaster right now, we did the loopty-loop and now we're back on," said Dan Deming, Chicago Board Options Exchange trader.

A federal plan to sure up the nation's banking system brought hope the government can put the breaks on this economic downturn.

"We must act now to protect the nation's economic health from serious risk," said Henry Paulson, U.S. Treasury secretary.

Thursday, U.S. Treasury Secretary Henry Paulson announced the plan and that details were being worked out.

"I am convinced this bold approach will cost American families far less than the alternative -- a continuing series of financial institution failures and frozen credit markets unable to fund economic expansion," said Paulson.

U.S. Senator Dick Durbin was in on the congressional meeting with Secretary Paulson. Senator Durbin and others in Congress are looking to a plan to also help families in foreclosure.

"We're going to make sure we're sensitive to the big financial institutions and some of the mistakes they've made. We need to show sensitivity to working families as well," said Senator Dick Durbin, (D) Illinois.

"You've seen what's happened. You have to do something. The financial markets operate on fact, and they operate on emotion and hope. Or fear," said Rich Berg, Performance Trust Capital Partners CEO.

Berg says the market needs optimism to function and a government plan is the best way to infuse some optimism.

"Psychologically, it starts with the feeling that I don't have to sell and that puts the pressure off the market. So optimism is required for markets," said Berg.

Details of the plan will be worked out over the weekend. Senator Durbin expects the see something in writing next week. The president is urging Congress to move quickly once there is a proposal.


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