BAILOUT PLAN REJECTED. Sep. 29, 2008. (Part 2)

Sep. 29, 2008.
Stocks plunged on Monday in their biggest decline ever after U.S. lawmakers unexpectedly rejected a $700 billion financial bailout, spooking investors who fear for the future of global markets and the U.S. economy.

The Dow lost 778 points, its largest point decline in history, and posted its biggest daily percentage slide since the 1987 stock market crash. The benchmark S&P 500 also had its worst day in 21 years after the House voted down the bailout plan by a count of 228 to 205.

The failure of the bill, which would have let the Treasury buy up bad mortgage debt from struggling banks in an effort to kick-start much needed lending, was seen as crucial to shielding the economy from an even deeper slowdown.

That further unnerved investors who on Monday saw the credit crisis claim several new victims, including Wachovia Corp and a bevy of European banks.

Fear was deep and widespread, as investors dumped stocks for the relative safety of U.S. government bonds. The Chicago Board Options Exchange Volatility Index, Wall Street's main barometer of investor fear, jumped 39 percent to 48.40, a nearly six-year high, and was at 46.72 at the close.

"I am shocked. Credit markets were struggling even with the prospect this bill was going to get passed. Now the bill doesn't get passed and it just throws one more monkey wrench into the mix," said Bob Doll, global chief investment officer of equities at BlackRock Inc, one of the world's largest asset managers.


http://www.reuters.com/article/newsOne/idUSTRE48S24L20080929

Category:

News & Politics

Tags:

• BAILOUT
• PLAN
• REJECTED.
• Sep.
• 29
• 2008.
• (Part
• 2)

[Ohman9264]

Let's not forget alot of European countries.

Yea we'll see how the dollar pairs up to the Euro by 2010 if we stick to pure capitalism.

[musicteacher8]

I'd love to know how free market capitalism has any play whatsoever upon the percentages charged on credit cards, the price of gasoline, food, utilities. Unless you are filthy rich, you can't play or compete with corporations. No matter what happens, this myth needs to be dispelled, that there is any notion of competition in the marketplace.

It's unfortunate that these banking institutions use the same cutthroat tactics on each other, to this result. Does a bailout mean the govt are "heroes"?

[divinacomedias]

Which socialism are we talking about?

Venezuela XXI centruy socialism 1 - USA free market kapitalism 0 - corporate socialism (fascism) 0

[divinacomedias]

lol, media say the contrary of the truth... so, no bailout=good.

[fergus247]

free market kapitalism 1 - socialism 0

[Ohman9264]

Melancholy Monday

9-29-08

Don't forget it.

When Capitalism fails... socialism saves the day.

[Jonadem1]

These arrogant (investment) bankers, who earn bonuses and get paid well, should be punished and learn how to be humble! Its the time for them to stand up on their feet instead of begging from small people who earn less, further using the tax- payers money! Shame on you!