NEW YORK, Oct. 3, 2008
Stocks Turn Lower Despite Bailout Plan OK
Dow Ends Volatile Week Down 157 Points Amid Worries About Obstacles Still Facing Economy
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A trader watches the numbers as he works on the floor of the New York Stock Exchange Friday morning, Oct. 3, 2008. (AP Photo/Richard Drew)
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(AP Photo/Richard Drew)
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Timeline Financial Meltdown Track major events that lead to one of the most tumultuous times in Wall Street's history.
Investors dumped stocks late in the session after a big intraday rally, repeating a defensive move seen throughout the yearlong market pullback. As lawmakers voted on the plan, which President Bush quickly signed into law, the Dow advanced more than 300 points. After it passed, the blue chips moved in and out of positive territory before ending down more than 150 points.
Investors had been anxious for resolution on the government's plan to buy up bad assets from banks and other institutions to shore up the financial industry and help resuscitate credit markets. Trading across markets was volatile throughout the week as investors tried to determine whether the plan would win approval and what effect it might have. On Monday, the House's rejection took Wall Street and Capitol Hill by surprise and handed stocks their biggest losses in years.
The Senate subsequently passed a sweetened version of the plan that added tax breaks and raised the limit on federal deposit insurance from $100,000 to $250,000.
"We're three weeks into a severe credit crunch and it's causing untold economic damage to the country," said Hank Smith, chief investment officer at Haverford Investments. He said while the bill's passage will help Wall Street, the broader effects of the paralysis in the credit markets has yet to emerge.
"It's fairly reasonable to assume that this should help unfreeze the credit markets but what we don't know what's happened so far. How much of a dent has it put into the economy?"
The credit markets indicated increased demand for safety. The yield on the 3-month Treasury bill, the safest type of investment, fell to 0.49 percent from 0.70 percent late Thursday. Yields have remained low in recent weeks because investors are eager to safeguard their money.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.61 percent from 3.64 percent late Thursday.
According to preliminary calculations, the Dow fell 157.47, or 1.50 percent, to 10,325.38 after rising more than 310 points.
Broader stock indicators also ended lower. The Standard & Poor's 500 index fell 15.05, or 1.35 percent, to 1,099.23, and the Nasdaq composite index fell 29.33, or 1.48 percent, to 1,947.39.
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Michelle Obama tells how her role as the First Lady has changed her perspective.
The second time they tried to pass the bailout bill, Paulson and Co. was lying and said that there was a profit for the tax payer on this because the "tax payer is buying ''assets'' that will mature"
There is no value in these worthless debt ''assets'' because they are all ''derivatives'' with no ''real asset'' attatched to them like actually property; thesea are all gambling bets.
We are such ''suckers'' to bailout the banks, leave us in a depression and let the bankers escape to Dubai and hoard the money all to themselves.
We are so sooooo stupid.
This will not work, the stock market and your 401ks will be obliterated no matter what. And we will soon go into Marshall Law and then the North American Union, and our currency will be replaced by a regional currency called the Amero.
Vote them all out! VOTE FOR NO INCUMBENTS
It was nice knowing you.
R.I.P.
1776-2008
So feel good out and feel good now and spend, spend spend.
hahahahahaha
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The market saw the non-passing of this bill as a joke too at the begging of the week.
What$ that huge $ucking $ound?
That$ Republicon$ ki$$ing Bu$h$ a$$...
Posted by Oscarez at 03:53 PM : Oct 03, 2008
Look again hot dog man, a bit more drop in the points than you thought.
Yet, time after time, in hindsite, they always wind up WRONG!
This headline tributes the bailout as the reason for the rise.
Yesterday, they tributed the failure of the bill passing in the Senate as the reason stocks dropped.
The dow is now losing again....hmmm....what will be todays "experts" reasoning?
Wake up folks, they are fkn around with taxpayers money, again, and the results at the end of the day should be no surprise to ANYBODY WITH A BRAIN!
Posted by tiddsanbeer at 03:05 PM : Oct 03, 2008
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So you think the average Am. taxpayer making less than $250K a year is going to get screwed again???
Guess I better get ready, think I will get a kiss?
Sort of reminds me like it was back in the 70s, The govt. officials would tell us to "tighten our belts", and then congress would vote themselves a pay raise the next day.
Guess Joe average needed to tighten his belt so Sen. and Rep could loosen theirs.
Posted by dkhorse1 at 03:13 PM : Oct 03, 2008
I hear Ted from Accounts Payable is going to get a divorce.
Yet, time after time, in hindsite, they always wind up WRONG!
This headline tributes the bailout as the reason for the rise.
Yesterday, they tributed the failure of the bill passing in the Senate as the reason stocks dropped.
The dow is now losing again....hmmm....what will be todays "experts" reasoning?
Wake up folks, they are fkn around with taxpayers money, again, and the results at the end of the day should be no surprise to ANYBODY WITH A BRAIN!
anyway, if it ends up down today, so what. The day to day isn''t the issue, the issue is we finally got the fundamentals in order.
(no we didn''t, I was being sarcastic).
- by easeup-2009 October 3, 2008 4:22 PM EDT
- Wait...this is GOOD news. CBS must be slipping!
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