Dow surges 889 points on Tuesday

It’s no big surprise, given America’s financial crisis, that consumer confidence is low.

Just how low surprised even economists on Tuesday.

But it seemed to have little affect on investors Wall Street rallied Tuesday.
It’s worse than experts thought.

Even as the government begins doling out billions to banks to loosen credit, consumers seem to have little hope that things will get better soon.

A surge on Wall Street Tuesday, anticipation of an interest rate cut sent the DOW soaring 889 points.

It’s best day in two weeks despite bad news on housing and consumer confidence.

Standard and Poors says in 20 cities your home’s worth about 17 percent less than a year ago.

That’s the biggest drop ever in that survey.

It might help explain why consumer confidence hit an all-time low of 38 this month.

The worst in the conference board’s 40-year history.

“The consumer is sort of getting the shock and becomes very negative about what’s going on. Any measures that are being taken will take more time for the consumer to restore confidence,“ said Bart van Ark Chief Economist of the Conference Board.

Measures like the government buying stock in banks so they can make loans.

“The way that banks make money is by lending money. So they have every incentive to move forward and start using this money,“ said White House Press Secretary Dana Perino.

But are banks hoarding their cash?

Some small businesses told Congress the trickle down isn’t working.

“Money goes to the banks, but where does it go then? It certainly hasn’t gone down to the small business owner,“ said Margot Dorfman of the U.S. Women’s Chamber of Commerce.

After 83-years in business Riemeier Lumber will close next week because it couldn’t get a loan.

“There were no banks that were interested,“ said chairman Thomas Franke.