Stocks finish sharply lower on bailout plan

[Pale Blue Dot]

Source: MSNBC

NEW YORK - Volatility is again sweeping the financial markets, with investors growing more nervous while they wait for further word about the government's plan to buy $700 billion in banks' mortgage debt. Stocks finished down sharply; the Dow Jones industrials closed down about 380 points, while investors have sought safety in hard assets such as gold and oil.

At one point, crude was up more than $25 a barrel as the October contract was on the verge of expiring. That pending expiration contributed to the price swing in oil, but emotion was still running high in the commodities markets.

Investors are relieved that federal authorities are taking action to relieve the nation's banks of their toxic assets. But Wall Street is not sure yet how successful the plan will be in unfreezing credit markets, which many businesses depend on to fund day-to-day operations, and for propping up the still-weak housing market.

Bush administration officials and congressional leaders have been meeting on the rescue plan, the thrust of which congressional leaders have endorsed. Many market observers are hoping for details of the plan to emerge by midweek and delays could weigh on investor sentiment.

"For now I think the market is giving everyone the benefit of the doubt," said Axel Merk, portfolio manager at Merk Funds. "This is not an 'all is clear' signal that we have now."

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

[Hugin]

1. Whoa!

The surge bailout is working!

[Naturalist]

2. Just more BS

Look if this is truly about Businesses and Future Homeowners being able to get loans then Start a new agency that will loan the money to those who need it if they qualify instead of giving it to Businesses that have managed poorly. Since we now own Fannie Mae and Freddie Mac why not make Fannie Mae for homes and Freddie Mac for businesses and those two use the TRILLION DOLLARS for loans. No BAILOUTS for Businesses. Loans Yes Bailouts NO if they qualify!!!!!!!. BAILOUT HOMEOWNERS that need the help if they qualify ONLY. You got to think faster than these crooks people!!!!

[truthisfreedom]

3. Good. This will put pressure on the 'thugs to cooperate with the Democratic Congresscritters.

[enid602]

4. dollar

Not good news for the dollar.

[jaybeat]

5. Stocks retreated after signals that the BLANK CHECK proposed by the Repukes

Might not be quite as blank as Wall Street had hoped.

Gonna take our marbles and go home, DAT's what we gonna do! Thwwwwwttt!

Fuck off and DIE, parasites.

[northernlights]

6. waaaaah!!!!

Time to send the waaaahmbulance to wall street. :nopity:

[Jersey Ginny]

7. I'm leaning against this bailout plan.

It seems more and more that the US will simply be delaying the inevitable. That the crisis will shift from Giant Corporations, who will learn nothing b/c of the bailout, to the federal government who may print money just to cover the debt they are about to purchase. This may lead to a draconian devaluing of the dollar (happening today) and tremendous inflationary pressures. It's like a shell game IMO with Americans/America losing out bigtime.