October 13, 2008 (Monday): Hungary Gets Help Offer; Stocks Stage a Rally

The International Monetary Fund steps in today with an offer of aid to Hungary, which has been particularly hard hit as investors flee for safer currencies in the financial crisis. The country’s prime minister said IMF help would be an option of last resort, though he expects the existence of the offer makes it less likely that it will be needed. Stocks, bonds, and the currency of Hungary all rose on the news. (For more on this news, click here and here.)

Coming after the worst week ever for the Dow Jones Industrial Average, a rally in the market today creates $1.2 trillion of value as investors react jubilantly to global government efforts to overcome the economic meltdown. The Dow, S&P 500 and Nasdaq all notch record or near-record advances, with the S&P adding 104 points, the most ever in one day. European and Asian stocks move higher also. The Dow closes up 936 points, finishing at 9387.61. (For more on this news, click here and here.)

At an afternoon campaign stop in Toledo, Ohio, Sen. Barack Obama unveils a new raft of policy proposals, billed by his campaign as a “rescue plan” for the middle class. The proposals include a three-month halt on home foreclosures, loans to local governments, and tax credits for businesses that hire new workers, and are being offered in response to what the Obama campaign in an email calls the economy’s “greatest uncertainty in over 70 years.” (For more on this news, click here, here and here.)