Dow Plunges More Than 500 Points At Close... Worst Drop Since 9/11...

[Richard Tafoya]

Headline roundup from Huffington Post:


Obama: 'I Fault The [McCain/Bush] Economic Philosophy'... (http://www.huffingtonpost.com/2008/09/15/obama-on-merrill-lynch-le_n_126392.html)

McCain: "Fundamentals Of Our Economy Are Strong"... (http://www.huffingtonpost.com/2008/09/15/mccain-fundamentals-of-th_n_126445.html)

Bush: We "Can Deal With These Adjustments"... (http://ap.google.com/article/ALeqM5gH8vjAe8Yxxfh2Mgi2N-G9cqOD8QD9377REO0)


Majority Leader Reid: 'What We Are Seeing Is The Legacy Of The Bush-McCain Economic Policies'… Speaker Pelosi: "Eight Years Of Weakened Regulation By The Bush Administration And Republicans Have Led Us To This Point"... (http://www.huffingtonpost.com/2008/09/15/reid-pelosi-slam-bush-mcc_n_126591.html)

Senator Biden: "McCain Stands With George Bush Firmly In The Corner Of The Wealthy And Well-Connected"... (http://news.yahoo.com/s/ap/20080915/ap_on_el_pr/biden_3)

Secretary Paulson Deflects Blame: "I'm Playing The Hand That Was Dealt Me"... (http://www.cnbc.com/id/26723090)

[DoubleEdgeSword]

Somebody needs to step up to the plate.

[lions1mew]

It's pathetic that this is a society in which no one will take responsibility for their own actions, or ineptitude in the case of this administration.

[SparkleHugs]

what do you think the effects of this will be? I am not too well versed in economy, and i know this is bad, but im not too sure what the consequences of such a drop can be.

[DoubleEdgeSword]

Economists disagree on what action the government should take; however, the majority of them agree that the nation's economy is seriously stressed. Last night, central world banks put $247 billion dollars into the markets. The Dow opened up this morning, but this is another bandaid, albeit a large one.

With stocks falling, the average 401k owner will see their savings erode. With financial instiutions and commercial banks failing, credit will tighten. Loans will be harder to get and interest rates will be higher.

In general, the economy will slow. Less money to expand business will mean slower job growth; some business will fail and mean more job loss. Tight credit and higher interest rates will mean fewer new housing starts and more people priced out of the housing market. All of this may effect consumer confidence, which means people will cut back on spending, putting less money into the economy. It's not a pretty picture and I don't think even the Bush administration believes another stimulus check is going to fix this one.

[James Dean]

I was at work all day until I got home to see this, it's terrible.

[Whoda Thunk?]

It bounced back most of that today (+410.03) but who knows how long that will last. The US is in a mess and it's going to practically take a miracle to get us back on solid ground.

[DoubleEdgeSword]

Dow is up around 300 points right now on news that the government plans an enormous bailout of troubled financial institutions. Short-selling is banned temporarily by the SEC.

http://money.cnn.com/2008/09/18/news/economy/rtc_speculation/index.htm?postversion=2008091910


Paulson is making a statement now.

[DoubleEdgeSword]

Paulson says bailout will cost "hundreds of billions" of dollars.

http://money.cnn.com/2008/09/18/news/economy/rtc_speculation/index.htm?cnn=yes

[db44]

...Tell me if I'm understanding this all correctly:

If the housing market goes all heywire, it's the middle/low-class' fault for asking for more than they were likely to cover. Nevermind ARMs, nevermind the mortgage-lenders offered those loans, apparently with credit checks in hand (when I applied for my first mortgage, I had to write an official letter to the bank, explaining why I had been outstanding on a cellphone bill, so it's not like the lenders don't check every detail). The government worked still worked out a relief plan, while scolding the lenders, and doing the bare minimun to help.

Now, lenders, trading and holding companies and such are in trouble for various reasons. But this time, as its big business that royally screwed up the country, the government is quick to respond and pretty much save all those companies? What are these companies going to do when healthy? Continue bilking the lower classes again? And all this while the president turned away and denied there was a problem?

Am I missing something?

[lions1mew]

Nope, that pretty much covers it ...

Seems the Dubya administration is trying to cover its proverbial tukkhis on this debacle. Too late fella, we know you and your corporate buddies are to blame for this.