(CEP News) - Equity markets stormed back from deeply negative territory on Thursday after a report suggested the U.S. government is considering a plan to subsidize mortgage payments.

The Obama administration is working on a plan that would use government funds to help people make their mortgage payments, according to a Reuters report.

The S&P 500 was at a session low of 808 when the news was first reported at 3 p.m. EST; it closed up 1.5 points at 835. The Dow Jones industrial average closed down 7 points to 7933 and the Nasdaq closed up 11 points at 1542. In Canada, the TSX was up 47 points, or 0.5%, to 8785.

The story, which quotes “sources familiar with the plan” say the plan would be aimed at homeowners who would qualify through a standardized appraisal based on affordability. The key will be finding a set of standards that can quickly be applied to all mortgages.

Speculation suggests the government and banks would share the burden of lowering mortgage payments.

All data taken at 4:05 p.m. EST.

By Adam Button, abutton@economicnews.ca

CEP Newswires - CEP News © 2008. All Rights Reserved. www.economicnews.ca

The Copying, Broadcast, Republication or Redistribution of CEP News Content is Expressly Prohibited Without the Prior Written Consent of CEP News.

A copy of CEP News disclaimer can be found at http://www.economicnews.ca/cepnews/wire/disclaimer.

Posted in Categories: Economy, Eurozone, Releases, Stocks, USA.

Subscribe by RSS Subscribe by Email