JOHNMATYI.COM: Presidential debate tonight with an 800 pound Gorilla in the room: The Economy.

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JOHNMATYI.COM: Presidential debate tonight with an 800 pound Gorilla in the room: The Economy.

Presidential debate tonight with an 800 pound Gorilla in the room: The Economy.

Charles Payne on Market Madness [Fox Business Channel]:

"It's going to take four weeks or more before the government begins buying distressed mortgage assets. The market can't wait that long."

[John K. Matyi] By 0600 hours this morning the DOW (DJIF0) was up 76 points (0.76%), S&P 500 up 11.30 (1.07), and the NASDAQ 100 was up 13.25 (0.94%). What a roller coaster ride, especially if you have a 401k at work, or an IRA you were counting on for retirement. After an 800 point drop in the DOW yesterday followed by a market upward surge that still left us down 3376 points, the words of the day in business news seems to be "no confidence" The European and Asian markets are also back up this morning after a similar plunge yesterday.

With Fed Chairman Ben Bernanke attached at the hip to Henry Paulson, Secretary of the Treasury, and working with business leaders there seems to be a small amount of confidence coming back to the market. but don't look for an immediate turn around. With the lack of business leaders involved in government so far there has been little confidence in the government's ability to help rather than harm our economic problems. Another reason why confidence in the government is so low is that the Fed's keep injecting money into the market and it doesn't seem to help. In my opinion this is not much different in how the government 'solves' most problems (Education is a good example). Just need to throw more money at the problem and it will go away (the money that is, not the problem.

With Obama in the lead in national polls, as well as in some key states, John McCain has to really do well tonight. He must describe (in detail, not with sound points) exactly what his economic plan will be as president to stabilize the economy or he could lose the election. All Obama has to do is look presidential (and he doesn't do a Biden 'mis-speak' too often - See Video Below), so the pressure is on. Obama will attempt to keep the discussion on economics as he knows this is his strong suit and the number one issue on voters minds. If McCain try to steer the topic back to national defense (where he feels most comfortable) I believe he will turn a lot of people off.