Well as predicted here, the bailout bill has been passed by Congress. Just four days after the defeat of President Bush’s financial bailout package in Congress, the House of Representatives gave the revamped plan a new look and evidently liked what was in it.

Some of the new things added includes an extention of a program that pays rural counties hurt by federal logging cutbacks. It also continues to give tax credits for renewable energy such as hydropower, wind, solar and geothermal electricity.

This is an example of pork barrel politics.  Here is a good article on it 

On a side note, there is a battle brewing over Wachovia Bank and the players are Citi and Wells Fargo. I wonder how the Feds are going to work this one out behind closed doors.

I am not a stockbroker but let me give this a try. Short selling basically means that you sell stock that you don’t own. Basically you borrow a stock and then you sell it as soon as you can. The idea is that you want the share of stock to fall in value so you can buy it back at a lower price.

Are you confused yet? There is more! Those involved in this practice frequently spread rumors to get the stock to drop.

There use to be regulation on Wall Street to prevent this practice called the Uptick Rule but the SEC got rid of it. Their reasoning was that it was an ineffective rule.

Maybe I am naive about all of this but it seems to me that the Feds need to investigate the Sec. What do you think?

If you would like more information about this dubious practice here is a link:

Investopedia