McClatchy tells us why the market lost its early momentum today: U.S. takes stake in banks; stocks soar, then fall back

WASHINGTON — President Bush on Tuesday took the wraps off a historic and reworked financial-rescue plan, confirming that the United States will take equity stakes in nine banks, backstop virtually all non-interest-bearing bank accounts and guarantee most new loans between banks.

The White House plan marks the first such deep government intervention in markets since the Great Depression. Bush noted that he didn’t take the aggressive and unusual steps lightly, stressing that “these measures are not intended to take over the free market, but to preserve it.”

Every time he talks about the economy, people are reminded he is still in the White House, and the market tanks. They should just give the message to Barney and let him take it to the press room. It would be a better photo op, and people wouldn’t be reminded of the current administration.

Update at 9:30pm [CDT] it looks like another Conservative government with the Tories taking seats from the Liberals, but not enough for a majority [155].

Update at 11:30pm [CDT] :

Conservatives: 143 [+16]
Liberals: 77 [-18]
Bloc Québécois: 49 [+1]
NDP: 37 [+7]
Greens: 0 [-1]
Independents: 2 [-1]

Today is election day in Canada and the polling starting early this morning in Newfoundland, but nothing will be reported until the last polls close on the Pacific Coast at 7pm PDT [9pm CDT].

It is expected that the Conservatives will again be given the opportunity to form a minority government.

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Position: 16.2 N 83.8 W [10 PM CDT 0300 UTC].
Movement: West-Northwest [285°] near 6 mph.
Maximum sustained winds: 30 mph [55 kph].
Wind Gusts: 40 mph.
Minimum central pressure: 1005 mb ↑.

It is 90 miles [150 km] North-Northwest of Cabo Gracias a Dios on the Nicaragua/Honduras border.

The government of Honduras has issued a Tropical Storm Warning from the border between Honduras and Nicaragua westward to Limon and a tropical storm watch from west of Limon westward to the Guatemala border.

At 800 PM EDT…0000z…the government of Belize has issued a tropical storm watch from Belize City southward to the Guatemala border.

Here’s the link for NOAA’s latest satellite images.

[For the latest information click on the storm symbol, or go to the CATEGORIES drop-down box below the CALENDAR and select “Hurricanes” for all of the posts related to storms on this site.]

Position: 14.3 N 68.1 W [10 PM CDT 0300 UTC].
Movement: Northeast [050°] near 6 mph.
Maximum sustained winds: 75 mph [120 kph].
Wind Gusts: 85 mph.
Tropical Storm Wind Radius: 90 miles [150 km].
Hurricane Wind Radius: 15 miles [30 km].
Minimum central pressure: 979 mb ↓.

It is 315 miles [505 km] South-Southwest of San Juan, Puerto Rico.

At 11 PM AST [0300 UTC] a Hurricane Warning has been issued for the U.S. Virgin Islands and the islands of Vieques and Culebra; a Hurricane Warning has been issued for St. Martin/Maarten, Saba, St. Eustatius, St. Barthelemy, the British Virgin Islands, Anguilla, St. Kitts, and Nevis by their respective governments.

At 11 PM AST the government of Antigua has issued a Tropical Storm Warning for Antigua, Barbuda, and Montserrat.

A Hurricane Watch and a Tropical Storm Warning remain in effect for Puerto Rico. A Hurricane Warning could be required for Puerto Rico Wednesday morning.

Here’s the link for NOAA’s latest satellite images.

[For the latest information click on the storm symbol, or go to the CATEGORIES drop-down box below the CALENDAR and select “Hurricanes” for all of the posts related to storms on this site.]