Dow Jones plops 600 points! :O

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saffakanera

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US legislators reject $700 BILLION plan to bail out the financial system, Dow Jones down 600 Points!

EINA BLIK$EM!
 
Here we go... markets crashing!!

Only a matter of hours now.
New York - The US House of Representatives on Monday defeated a $700bn 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 vote to reject the bill was announced on the House floor.

Fear swept across the financial markets Monday, sending the Dow Jones industrials down as much as 705 points.

As the vote was shown on TV, stocks plunged and and investors fledto the safety of the credit markets, worrying that the financial systemwould keep sinking under the weight of failed mortgage debt.
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From: http://www.fin24.com/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-1783_2401699
Rand now R8.35 per $ :D
 
New York - The Dow Jones industrials plunged over 700 points Monday after the rejection by US lawmakers of a massive rescue plan for the financial system.

The index of blue chips slid 718 points (6.4%) to 10 425.10 at 1930 GMT. The Nasdaq index plummeted 177.18 points (8.12%) to 2 006.16 and the broad-market Standard & Poor's index lost 98.62 points (8.13%) to 1 114.65.

Marketwatch.com has reported that the Dow is on track for its biggest loss on record.
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What's next? :(
 
Eish not good. Like it or not they have to bail out the banks with tax payers money. Hell in the long run they may even turn a profit
 
alanf85 said:
Eish not good. Like it or not they have to bail out the banks with tax payers money. Hell in the long run they may even turn a profit
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If there was any profit to make here then they would have let market forces prevail. This is a cock-up of epic proportions. This might well be the beginning of the demise of the USA as a superpower. The parallels between this situation and the UK in the 1920s and Russia in the 1990s are striking.

And no, I'm not reveling in the possibility of this happening. I'm as worried as anybody else so spare me the tin foil remarks.
 
StrongTurd said:
If there was any profit to make here then they would have let market forces prevail. This is a cock-up of epic proportions. This might well be the beginning of the demise of the USA as a superpower. The parallels between this situation and the UK in the 1920s and Russia in the 1990s are striking.

And no, I'm not reveling in the possibility of this happening. I'm as worried as anybody else so spare me the tin foil remarks.
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I think that's impossible. There is no way in heck that the US will be taken down as superpower. Russia in 1990 was one apocalyptic mess, unlike the US with its 137 million jobs, its excellent work ethic, it's excellent infrastructure and its lead in all technological development (most R&D in everything occurs in the US) and the biggest reason (sheer size of the US economy), Russia as the Soviet Union was an inefficient, incompetent, bungling bear lead by a centrally controlled economy with nothing good going for it. If anything Russia's current crisis is greater than that of the US, and
Russia can't even bail itself out without the oligarchs unlike the US. Remember the financial crisis thus far has not effected US growth yet, the latest GDP figures show a 2% increase unlike the EU where the economy is actually declining.

It seems Congress was only not too happy about the plan itself, in a more modified form they will probably pass another plan or reform.
 
As Peter pointed out it's a very different situation to Russia and to the U.K IMO. The U.K were involved in the first world war which absolutely dwarfs any of Americas current problems. No doubt America will be pegged back but that was always going to happen with the rise or China, India and to a lesser extent Russia. America will one day fall away as the sole super power but not for a very long time IMO
 
American financila markets might be in an mess but they definately haver better work ethic and are smarter and innovative than most nations.They will survive
 
jambai said:
American financila markets might be in an mess but they definately haver better work ethic and are smarter and innovative than most nations.They will survive
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Their innovation could well be their downfall in this case.
 
jambai said:
American financila markets might be in an mess but they definately haver better work ethic and are smarter and innovative than most nations.They will survive
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There are financial markets and there are reasons why US is so powerful in the first place. I would agree that US is headed for heck (see my sig - Cake Town :) ) if an Independence Day (the movie) like alien force came down and destroyed 30% of the population and destroyed most of the US industry and infrastructure but since those things won't happen, US won't go down. The US economy is just too big for that.
 
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