GovernmentBailout

During the past month, AIG stock fell nearly 10% drop after an announcement that the government would sell some of its stake in the insurance giant. The Treasury's ownership in the company has declined from 92% to 77%, but the prospect of its future sell-offs are holding the stock down.

In a key test of whether it will be able to raise the %u20AC20 billion it needs to avoid a bailout, the Portuguese government hopes to sell %u20AC1.25 billion in a bond auction Wednesday. Will Portugal end up following the path of Ireland and Greece?

The Fed's decision to focus on consumer credit availability appears to be just the right medicine. Mortgage applications for the week ending November 28 soared a record 112.1%, to 857.7, the highest since the week ended March 21, according to the Mortgage Bankers Association (MBA). Thanks to the...