The Dow rallied over 900 points to as high as 283 and is now in positive territory. Reader M passed us this report:
A well informed investor I speak to regularly relays that the 3:45 PM speech by Paulson, coming out of the IMF meetings, will include the roll out of a joint clearing mechanism to get interbank lending rates like LIBOR down. Treasury’s GS wunderkind Kashkari is due out Monday AM with the opening TARP moves, which probably require equity recap announcements given the late stage of the game. And as you may already know, last night, Pelosi signaled November 17th the House & Senate will be called back for a $150b tax cut.
Update 4:15 PM: The Dow closed down 128 points. The VIX, a proxy for volatility and market risk, reached a new record of 74. The yen weakened to 100 to the dollar. Brent crude fell to $76 a barrell and gold fell to $850 an ounce.