Stocks have gained steam in the last hour, but particularly after 2:30 pm as Fed Chairman Bernanke came out and gave his blessing to the plan.
Why? Because stock traders are pragmatists. Is the Bush mortgage plan a "rational response" or a "bailout?" The beautiful thing about spending your day with stock traders is that for the most part, while they may argue about ideological issues, they are at heart pragmatists. And what they care about is money.
And here is the bottom line for Wall Street:
--This "bailout" is good for stocks.
--The Street believes that the macro events of the "bailout" will help mitigate the effects of a slower economy.
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