Why You Should Hate the Treasury Bailout Proposal

http://money.cnn.com/2008/09/22/markets/oil/index.htm?postversion=2008092214

Oil skyrockets

Futures spike over $20 on the bailout plan and falling dollar.


NEW YORK (CNNMoney.com) -- Oil prices jumped more than $20 a barrel Monday in biggest dollar jump ever as the dollar falls following the government's $700 billion Wall Street bailout plan.



Oil surged $22.46 to $127.01 a barrel, after reaching as high as $128.55 - a $24 gain - at these levels it will be oil's biggest gain ever in dollar terms.



The rally reached a fevered pitch as the session neared its close, partly due to the fact that Monday is the last day of trading in the October oil futures contract, which typically results in volatile trading.



As of Tuesday, the front-month contract will be November. That contract showed prices up $6.44 to $109.19 a barrel.


"The biggest news is that people are looking at the $700 billion plan as supportive of demand, supportive of the economy," said Peter Beutel. "Everything we are looking at right now says demand has a chance to come back if the economy starts to strengthen."