Monday, September 29, 2008

Is everybody happy?

Mr Natural by R. Crumb.


Dow and S&P 500 close with dramatic falls after House vote

By Michael M. Grynbaum
Reuters, The New York Times
September 29, 2008

Stocks took a deep plunge on Monday after the government's bailout plan — touted by its supporters as a balm for the current market stress — failed to pass the House of Representatives, setting off a fresh wave of anxious selling.

In yet another day that has shaken the embattled canyons of Wall Street, the Dow Jones industrial average fell nearly 778 points, or 7 percent, while the Standard and Poor's 500-stock index lost 106.59 points, or 8.79 percent. The Dow posted its biggest daily percentage decline since the October 1987 stock market crash, while the benchmark S&P 500 had its worst day in 21 years after the House sent the bailout plan to defeat by a vote of 228 to 205.

The fear was most pronounced in the world's credit markets, considered gauges of anxiety among investors. Yields on Treasuries plummeted after the House rejected the plan, with the one-month Treasury note yielding virtually zero.

Banks are charging enormous premiums for short-term financing; the difference between the cost of a three-month loan from a bank, and a three-month loan from the government, rose to the widest point since at least 1984. Other lending rates stayed high.

On Wall Street, the drops were sharp and swift, catching many investors and stock strategists on Wall Street by surprise. Many had expected the measure to be passed in the House, and lawmakers in Congress had suggested as much in comments earlier on Monday.

Instead, traders around the world turned to their television screens to see the votes opposed to the bill adding up, and eventually surpassing those in favor. The banal image broadcast on several television networks — a no-frills table of 'yay' and 'nay' votes — contrasted with the expressions of increasing concern on the faces of workers on the floor of the New York Stock Exchange.

House rejects bailout plan

McCain slams "phoning it in"--then makes some calls

Jim Wallis commentary: Principles in an Unprincipled Crisis

Did [House Speaker Nancy] Pelosi's ad lib doom the deal?

Thomas Frank commentary: Wrecking, Wrecking, Wrecked

Bush Sidesteps Congress? $630 Billion To Be Pumped Into Economy Despite House Bailout Rejection


Bryce said...

too effed up for mere words

polerin said...

This whole thing doesn't surprise me. I've been predicting a major depression for years :(

Marion said...

I'm with Bryce. I don't know what to say.

JoJo said...

"I'm frightened Auntie Em!"

My mom, who grew up in the Depression, is really, really upset over this whole situation. I'll be closing my account at WaMu as soon as Brian's last check is deposited. Not b/c I don't trust them or trust Chase, but b/c I am furious over the CEO's multi million dollar golden handshake after being on the job for 3 weeks.

deerfieldparksouth said...

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