US Stock Suffers Largest Point Drop in History

[Venetia]

http://www.msnbc.msn.com/id/3683270/

Dow slammed, posts worst-ever point decline
Disappointment over failure of House vote on financial rescue package

Market update
Index Last Change  % change
• DJIA 10365.45 -777.68  -6.98%
• NASDAQ 1983.73 -199.61  -9.14%
• S&P 500 1106.42 -106.85  -8.81%

Overseas markets
SYMBOL LAST CHANGE  % CHANGE
FTSE (London) 5088.47 -108.55  -2.09%
DAX (Frankfurt) 6063.50 -109.53  -1.77%
Nikkei 225 (Tokyo) 11743.61 -149.55  -1.26%

 

NEW YORK - Wall Street ended a stunning session with a huge loss Monday, with the Dow Jones industrial average plunging 778 points — its largest point drop ever — after the failure of a House vote on the financial bailout plan.

Wall Street started tumbling as the vote was shown on TV Monday afternoon, sending investors fleeing to the safety of the credit markets, worrying that the financial system would now keep sinking under the weight of failed mortgage debt.

The plan’s failure means no one knows how the financial sector hobbled by hundreds of billions of dollars in bad mortgage bets will recover. The credit markets remain close to frozen as banks are too afraid to lend — including loans to other banks.

The Dow closed the day down 777.68 points, or 6.89 percent, beating its previous record for an intraday drop of 721.56 points, set during the first trading day after the Sept. 11, 2001, terror attacks. Still, in percentage terms, the decline remained well below the more than 20 percent drops seen on Black Monday of October 1987 and the Depression.

“This is panic, and fear is running amok,â€

 

[e]

I wouldn't recommend living the US for the next five years

Seriously, good luck to all of you down there; looks like it's gonna be a tough couple of years, economically speaking. 700 billion? Shee-ite.

 

[Ellie]

It's not just the US.

It sounds all fun and games, but my bank, my parents' banks, my parents' mortgage broker, pension provider, whatever, are all owned in the end by big American banks.

(I believe they pulled out of the $700bn by the way, some legal people ruled against it or something, dunno the details).

 

[Venetia]

It's still not as bad, percentage-wise, as Black Monday in the 80's, but still: YEESH.

Totally out of the blue, too: Friday was hunky-dorey flapjacks.

Amazing what effect one piece of legislation can have on the WORLD economy!

(I posted the numbers from a few countries: England, Germany, and Japan all fell, too!)

 

[Ellie]

Everyone moans at Labour (our government) for all this, and yet the Conservatives were recently involved in group short-selling of shares in Bradford and Bingley.

The British government, meanwhile, said it is nationalizing mortgage lender Bradford & Bingley, which has a $91 billion mortgage and loan portfolio. It was the latest sign that the credit crisis has spread beyond the U.S. Video

Northern Rock I had never heard of somehow. But suddenly a big chain like Bradford and Bingley goes down and it all hits home.

 

[e]

Apparently, we're safer up here in Canada because of national regulations & policies; for once, it helped that the government is involved in the management of our economy, both public and private.

 

[Ellie]

You're not safe. Nobody's safe. The world is going to end. Tomorrow, in fact.

But seriously, you're not safe. Think of your US imports; think of where you get your fuel from, I bet a lot of your companies are owned by, or have shares in, American chains too.

 

[e]

I didn't say we're safe. I said we're safer, which only means that we're "more" safe than...

 

[Venetia]

Ah, we'll bounce back. Just sucks though, such a large setback. Atleast I'm not going to be in the market to buy a house for a good 5 years or so, and that all my APR's are fixed!

 

[Prexus]

Isn't most of Canada's fuel exported from Canada to the US then resold back to Canada?

If Canada wants to maintain it's ability to stay afloat during this recession, voting Liberal at the Oct. 12th election is going to make a massive impact. Harper and the Conservative Party are all about privatizing companies and corperations and keeping the government's rules and legislature out of the picture. It's part of the reason that the Listerosis(sp?) meat crisis was such a problem in Canada because the government wasn't overseeing the meat quality control.

 

[Despain]

fine by me bitches

i still got my white privelege

 

[JD_Slasha]

Jesus. I was seriously thinking of opening 2 more credit cards too. wtf.

 

[Skyla Doragono]

My dad just actually bought his house. :x  Ouch.

 

[DopyG]

This doesent just affect U.S. >:|
It also affect us in Denmark and its pretty far away...

 

[Makasu]

Its funny how a piece of paper with a picture on it can cause this much trouble.

Maybe the Mayans were in fact right!

But we'll bounce back. I thought they implemented 'ways' to prevent another great depression from happening and things of that sort? But it seems like we're slowly but surely sliding towards what we ought to be trying to prevent.

 

[Prexus]

They implemented fix is to give 70$billion to the banks.

 

[Venetia]

My dad just actually bought his house. :x  Ouch.

Actually that's a good thing. The APR was low up until today. Tomorrow it'll undoubtedly spike for a while. As long as he signed the paperwork before 4:30pm EST today, he's got it made in the shade.

 

[Cruelty]

yeah this bullshit happened two months before i was going to go for a college loan. i'm no expert, but i somehow assume this shit is going to have a detrimental effect on that whole plan.

whatever i can always just steal copper pipes like everyone else. no big deal.

 

[DopyG]

College loans? xD
I'm VERY lucky its different in Denmark.. :D

In Denmark you get paid for edutacting (the payment start when you are 18).

 

[Incognitus]

It's still not as bad, percentage-wise, as Black Monday in the 80's, but still: YEESH.

Totally out of the blue, too: Friday was hunky-dorey flapjacks.

Amazing what effect one piece of legislation can have on the WORLD economy!

Friday was only "hunky-dorey flapjacks" because investors felt that they were guaranteed to get this "rescue package". Obviously when that was [rightly] rejected, the stock markets would go back to where they were last week. And it is "not totally out of the blue" in any way, shape or form. People have been warning about this for years. Not only that, but the legislation that has been rejected was devised and written a few months ago.

I believe they pulled out of the $700bn by the way, some legal people ruled against it or something, dunno the details.

I suspect the fact that someone from the Treasury said that $700bn was just plucked out of the air because they felt they "needed a really big number", might have had something to do with it.

http://latimesblogs.latimes.com/washing ... -plan.html


The bailout was only ever going to be propping up the share prices so that the insiders could salvage as much as they possibly can whilst dumping their shares.



Start investing in gold (and oil) before everyone else does!