Photo: #A trader puts his hand on his head on the floor of the New York Stock exchange October 9, 2008. After a day in which the markets showed early promise in gains, the Dow fell 678 points, falling below 9000 points at the end of the trading day.

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Will government intervene in the banks?

Broadcast: Midmorning, 10/10/2008, 10:06 a.m.

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Bush administration officials say some of the $700 billion in the bailout passed by Congress might be spent on buying bank assets. Meanwhile, John McCain and Barack Obama argue on the campaign trail about whether buying up unsteady mortgages is a good use of the bailout fund.

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  • Peter Coy: Economics editor at Business Week.
  • Christopher Whalen: Senior Vice President and Managing Director of Institutional Risk Analytics, which focuses on the banking industry.

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