Stocks soar on news of Citi rescue, Obama team

U.S. stocks rallied today as the U.S. government said it would back troubled Citigroup Inc. with $20 billion in fresh capital and the guarantee of $306 billion in mortgage-related assets.

The Dow Jones industrial average gained nearly 900 points over the past two sessions on news of President-elect Barack Obama's choice for his economic team.

The Dow Jones industrial average closed up 396.97, or 4.93%, at 8,443.39; the S&P 500 rose 51.78, or 6.47%, closing at 851.81; and the Nasdaq composite was up 87.67, or 6.33%, to close at 1,472.02. All numbers are preliminary.

Oops! Bernanke admits to subprime miscues

Fed chairman Ben Bernanke has acknowledged that he was in error when he forecast that the subprime-mortgage crisis, and the resulting credit crunch, could be contained, according to a feature story in the latest New Yorker magazine.

“I and others were mistaken early on in saying that the subprime crisis would be contained,” he said.

On Feb. 28, 2007, Mr. Bernanke testified before the House Budget Committee that he expected moderate growth and that the economy should begin to rebound by the end of the year (

Oops! Bernanke admits to subprime miscues

Fed chairman Ben Bernanke has acknowledged that he was in error when he forecast that the subprime-mortgage crisis, and the resulting credit crunch, could be contained, according to a feature story in the latest New Yorker magazine.

“I and others were mistaken early on in saying that the subprime crisis would be contained,” he said.

On Feb. 28, 2007, Mr. Bernanke testified before the House Budget Committee that he expected moderate growth and that the economy should begin to rebound by the end of the year (