Betting On Recovery -- Investors Like Freddie, Fannie Developments, Send Stocks Surging by Nearly 300 Points

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NEW YORK - Stocks rallied Monday as investors placed bets that a recovery in the financial and housing sectors is more likely to occur following the U.S. government's bailout of mortgage giants Fannie Mae and Freddie Mac. The Dow Jones industrial average gained nearly 300 points.

The announcement Sunday that the Treasury Department was seizing control of the companies, which own or back about half the nation's mortgage debt, brushed aside investors' long-simmering worries that the pair would be felled by a spike in bad mortgage debt.

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Betting On Recovery -- Investors Like Freddie, Fannie Developments, Send Stocks Surging by Nearly 300 Points

Investors were hoping that the plan to inject as much as $100 billion in each of the government-chartered mortgage financiers could not only help lower mortgage rates but perhaps help buoy the overall economy. The move could help banks feel...

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