Finally, yesterday brought some good news from the financial world, as the Dow decided to show people some power and jumped almost 500 points to close at 7,775.86 for the day. It was the fifth highest jump in the Dow’s history.

What triggered this increase? It seems they were pleased by some of what came from the Administration regarding the purchasing of $1 trillion dollars of something called “toxic assets” from banks, with the help of private investors. Basically, toxic assets are possessions that aren’t worth what they were when they were originally acquired, so trying to sell them to someone else will result in a major loss. That’s the easy version, and if you think of garage sales, in essence that would qualify. On a larger scale, all those houses that banks have foreclosed on because people couldn’t afford to keep paying on them, and then had the houses lose their value, are considered toxic assets because the banks can’t sell them to anyone and make back the money they’re about to lose on the deal. For a more detailed explanation, view the video below:

Anyway, what this will supposedly do is bring the value of many of these banks back up, and thus shore up the financial strength of everyone across the board. It all sounds good, except that there’s still wonder and a little bit of skepticism that it will work for two reasons, one being who these private investors are going to be, and two, why would they be willing to part with so much money to acquire worthless mortgages?

The answer may come from firms like Blackrock, Inc, a hedge fund that, according to its chairman, Laurence Fink, is very interested. They’ll get some of the bailout money from the government, purchase these toxic assets, which many have thought about doing anyway, and then I suppose they’ll feel free enough to wait until the value of these mortgages increases again as the housing market gets back on its feet.

And it already looks like there are signs of improvement coming, as the National Association of Realtors gave a report showing that existing-home sales jumped 5.1 percent in February as more first-time home buyers jumped on many of the good deals they can get on some of these homes. Home sales reached a seasonally adjusted annual rate of 4.72 million in February, confounding analyst expectations that sales would continue to fall.

And there you go; I can’t believe it was only 11 days ago when I was saying how I wish there was some good news to report. It’s about time!