Global economic crisis

[Brent]

WASHINGTON (AP) — The House on Monday defeated a $700 billion emergency rescue package, ignoring urgent pleas from President Bush and bipartisan congressional leaders to quickly bail out the staggering financial industry.

Stocks started plummeting on Wall Street even before 228-205 to reject the bill was announced on the House floor.

Down over 500 although it was down over 700 about an hour ago.

http://ap.google.com/article/ALeqM5ioHc ... QD93GHLE03

[Derek Ortt]

its now down more than 600

[JTD]

Now down 700!!

[Brent]

DOW
10469.71
-673.42
-6.04%
NASDAQ
2011.1
-172.24
-7.89%
S&P 500
1117.83
-95.18
-7.85%

[Extremeweatherguy]

Dow was down 734 points about 10 minutes ago. Right now it is down ~650 points.

[Brent]

Coming back up a bit:

DOW
10607.9
-535.23
-4.8%
NASDAQ
2040.03
-143.31
-6.56%
S&P 500
1134.31
-78.70
-6.49%

15 minutes til close.

[Extremeweatherguy]

Dow now down about 560 points. Much better than it was doing 20 minutes ago, but still very bad.

[Brent]

DOW
10524.58
-618.55
-5.55%
NASDAQ
2030.24
-153.10
-7.01%
S&P 500
1126.22
-86.79
-7.15%

[gtalum]

Dow down under 600 now near the close. I'm glad the bailout failed. I hope they let it die. It's time to let the bleeding occur and get it over with.

[Brent]

DOW
10455.05
-688.08
-6.17%
NASDAQ
1983.73
-199.61
-9.14%
S&P 500
1118.94
-94.33
-7.77%

[Extremeweatherguy]

Down about 738 points now post-closing.

[Brent]

738... biggest one-point drop ever.

[Extremeweatherguy]

Now down 748.21 points

[Brent]

770.59!!!!! Is it ever going to stop?

777.68...

[Cryomaniac]

Not a good day to own stocks...

[HURAKAN]

It's a nightmare even if you don't own stocks.

[Ed Mahmoud]

They shouldn't have blocked the attempt at reforms of Fannie and Freddie back in 2005.

It isn't just Wall Street and greedy bankers, there was bad legislation that forced banks to have a quota for writing loans to low income people. Many had good credit, but when forced to write a minimum percentage of loans to low income people, eventually you have to write some bad ones. Google "Community Reinvestment Act" sometime. A change in the regulations was made in the Clinton administration to really push banks to write sub-prime loans, and the Bush Administration did nothing to change it when they took power.

People from both big political parties contributed to blocking reform. One key roadblock, not named so as not to be political, and now a major critic of Wall Street, defended Fannie Mae as sound when McCain was pushing for reforms that might have prevented this mess, possibly because he received over $40,000 in campaign donations from Fannie Mae, and partly because his then "husband" was a senior executive at Fannie Mae.


Plenty of blame to go around, the GOP controlled Congress before 2007 and did nothing, the Dems have controlled it since, and done nothing.

[MGC]

I've been in cash since last fall. Glad the bailout bill failed....MGC

[Ed Mahmoud]

It isn't just stocks. Banks will be much stingier lending money, which will depress auto sales further, hurt manufacturers of heavy equipment, and cost people jobs. Spending will decrease, which will slow the economy.


Of course, not all the banks will fail, and the ones that survive will eventually be stronger than ever. But unemployment will certainly rise to levels not seen in this country since the late 1970s.

[somethingfunny]

My opinion is probably too laissez-faire and classist to utter in a well-ordered forum like S2k so suffice to say....I'm glad it failed. I hope it remains failed. And I highly doubt that a collapse on Wal-Street will affect the beer distributors, meatpackers, hospitals, Main Street shops and restaurants, Wal-Marts, farmers, health insurance providers, ranchers, medical debt collectors, or food processing plants that employ the majority of the people whom I deliver pizza to here in Denison. I've been down and out for the count before. I know when a bailout is required, and I know people who really need one....