News / USA

US Stocks Edge Higher After Senate Passes Reform Bill

Multimedia

U.S. stock prices edged higher Friday after the U.S. Senate passed the biggest overhaul of the nation's financial system since the 1930s. The Senate measure must be reconciled with a version passed earlier in the House of Representatives, but it still marks a major policy victory for President Barack Obama. What remains uncertain is the bill's effect on the world economy.

The European debt crisis continues to hammer global stocks as fears grow that Europe's problems could have a wider impact.

Art Cashin, the floor director at UBS Financial Services, says many investors worry that the uncertainty in Europe could trigger another global meltdown. "Everybody keeps wondering if Greece is going to be the Bear Stearns of nations.  The fear is, if they go under, it might get another set of dominoes moving," he said.

Despite a $1 trillion rescue plan approved by eurozone nations to give low cost loans to member countries, the continuing weakness of Europe's common currency has driven many of the world's leading stock markets to their lowest levels this year.  

In the U.S., the Dow Jones Industrial Average fell briefly below 10,000 points on Friday.

But equities analyst Alec Young at Standard and Poor's says the declines are part of a normal market reaction. "So while we're not really forecasting another meltdown, we're more in the correction camp, you certainly have to warn investors that it is a possibility, we could be in for maybe a slightly smaller version of the roller coaster that we went through in 2008," he said.

The 2008 meltdown  brought down some of the largest financial institutions in the U.S. and led to massive taxpayer funded bailouts.  

President Obama, who has made Wall Street reform one of his top priorities, says the reform package passed by the Senate late Thursday means financial firms will now be held accountable for their actions. "There will be no more taxpayer-funded bailouts, period.  If a large financial institution should ever fail, we will have the tools to wind it down without endangering the larger economy," he said.

Besides expanding the Federal Reserve's powers to police banks and speculative markets, the measure also contains provisions to prevent financial institutions from becoming too big to fail.  It also gives consumers new protections against predatory lenders.

But Art Cashin says Wall Street remains wary. "The concern down here is it may intimidate some of the financial institutions, and therefore make credit less available and less likely and hurt the recovery," he said.

Some investors, such as Steven Special, say the uncertainty is too big a gamble. "I'm not investing because of the euro crisis, the euro crisis that is happening.  I still think everything is not perfect in our mortgage situation in the U.S., and the dollar is rallying, but that's a bad thing right now.  So yeah, I'm sitting in cash right now, I'm not doing too much investing right now," he said.

Despite concerns about the impact of reforms on Wall Street, the three major U.S. indexes  closed higher on Friday.

You May Like

EU Court Fines Poland for Hosting CIA 'Black Sites'

Ruling is first time a court has acknowledged suspects were held and tortured at the sites, under US program launched following the 9/11 terrorist attacks More

Migrant Issues Close to Home Spur Groups to Take Action

Groups placing water, food in the desert, or aiding detainees after release, have one common goal: no more deaths of migrants crossing illegally into the US More

Video At AIDS Conference, Prevention Pill Stirs Excitement

Truveda shows promise, spurring debate over access and other approaches More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Treatment for Childhood Epilepsy Heats up Medical Marijuana Debatei
X
Shelley Schlender
July 24, 2014 6:43 PM
In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Treatment for Childhood Epilepsy Heats up Medical Marijuana Debate

In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Airbus Adds Metal 3D Printed Parts to New Jets

By the end of this year, European aircraft manufacturing consortium Airbus plans to deliver the first of its new, extra-wide-body passenger jets, the A350-XWB. Among other technological innovations, the new plane will also incorporate metal parts made in a 3-D printer. VOA's George Putic has more.
Video

Video Death Toll From Israel-Gaza Conflict Surpasses 700

Gaza officials say a shelling hit a compound housing a United Nations-run school in the Gaza Strip, killing more than a dozen people, during an Israeli offensive in the area. Heavy fighting between the Israeli military and Hamas militants continued on Thursday, pushing up the death toll. So far, more than 730 Palestinians and 35 Israelis have been killed in the conflict. VOA's Scott Bobb has the latest from Jerusalem.
Video

Video AIDS Conference Welcomes Exciting Developments in HIV Treatment, Prevention

Significant strides have been made in recent years toward the treatment and prevention of HIV, the virus that causes AIDS. This year, at the International AIDS Conference, the AIDS community welcomed progress on a new pill that may prevent transmission of the deadly virus. VOA’s Anita Powell reports from Melbourne, Australia.
Video

Video Israel Targets Gaza Supply Tunnels

The Israeli military has launched a ground operation in Gaza to destroy the myriad tunnels that may have been used to smuggle weapons to Hamas. VOA's Zlatica Hoke reports that could mean more hardship for the people of Gaza, who obtain some of their essential supplies through these underground passages
Video

Video Researchers Target Low-Cost Avatar Technology

Scientists at the University of Southern California Institute for Creative Technologies say 3-dimensional representations could revolutionize social media. Elizabeth Lee has more from Los Angeles.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.

AppleAndroid