Thanks to news that the Federal Reserve was setting up, per CNBC, "a government facility to take on bad debts from financial institutions, preventing a worsening of the global credit crisis," the Dow Jones ended the day on the upswing.
Lightyear Capital chairman Donald Marron told CNBC, "This will bring real trust back into the market. It would free up real, spendable capital in these organizations. They can use that to make loans, to make transactions and to build confidence in the system. This is a confidence crisis." The Dow closed up 410 points, after a volatile day where it swung in a 561-point range.
Still, the NY Times found "there was little relief from the paralysis that has gripped the credit markets, which had sent investors flocking to the safety of Treasury bills and threatened to starve businesses of capital."
Also interesting: Attorney General Andrew Cuomo says he will investigate shortselling of Lehman Bros. and AIG.