Skip to comments.Dow (Futures) Down 150 Points
Posted on 10/05/2008 5:56:46 PM PDT by icwhatudo
Wall Street is reacting negatively to the passage of the banking bailout plan. Stock index futures, which give an indication of how trading will proceed when the market opens Monday, were down over 150 points at 8:30pm EST Sunday evening. Japan's Nikkei stock average has fallen 275 points (2.52%) on Monday (local time) despite President Bush's signing of the financial bailout bill.
(Excerpt) Read more at money.cnn.com ...
DJIA close the day after House defeat of bailout: 10850
DJIA just prior to Senate approval of bailout: 10831
DJIA close the day after Senate approval of bailout: 10482
DJIA just prior to House approval of bailout: 10679
DJIA close the day after House approval of bailout:???
(rough numbers based on times of votes)
$700B is not enough. Wall Street wants more and will thow a tantrum until its gets at least 3X that.
From here on out, our Nation’s budget will be held hostage to the DJIA.
Nice work on the bailout, guys. Hey, can you come trash my home and my car while you’re at it?
I hope the market improves, but I could understand it falling further after the “Bail out” passed.
Why is it called a bailout or a “rescue” plan?
I call it a failout.
Such a joke.
“Nice work on the bailout, guys. Hey, can you come trash my home and my car while youre at it?”
You don’t have to ask. They’ll just send you the bill.
I call it a sellout since that appears to be what many in our government did.
yes, the markets are now on to estimating how deep the slowdown/recession will be, looking for signs to hope, or indications of continuing distress.
Shhhh......doesn’t fit the storyline. The Pols in DC did SOMETHING so obviously it’ll all be OK. Right? Right?
I keep calling it a “buyout.” (husband recently took one, so the word’s in my head) It didn’t bail out anything, it was one massive bribe.
Gonna be a wild ride.
Will someone pree the “up” button please!
Wall Street wants more free money, f*** them.
No matter what name...it stinks big time.
I trade in aluminum. The bigger brokerage house are starting to dump some commodities...Fast. Friday, a couple brokerage houses called to let us know.
I am the last one in, guess who is the first one out? What a joke the failout, whatever... this shall put me on the unemployement line...
Loaning the money, I can understand, free out with the ramifications? Oh, hell no.
I can’t help but feel that this isn’t anywhere near over and more ransom will be demanded or “Main street” will burn.
If it was Wall Street asking for the money then why was there a train load of "sugar" piggy-backed on that bill? It was slight-of-hand. The real culprits were Fannie/Freddie and we barely glanced in that direction.
There are 1000s of not-so-rich people who have their investments connected to Wall Street, but they weren't helped by that guano bill.
CNN will blame “doubts about the President signing the bill” for the downturn. After someone whispers in their ear that he already signed it...it will be “all OJ all day”.
Yeah, what the heck? I thought that the bailout/rescue, whatever we call it, was supposed to support the market, help the banks lend money again, and put a floor under the market. I don’t know all the ins and outs, but I thought part of the reasoning was to keep the market from crashing. If the market keeps going down, people may well wonder if it was worth investing the $700 billion. Or wonder if the $700 billion will be a down payment on whatever comes next.
And hang on to your hat, and wallet, and go say some prayers, if President Obama is in charge when the next crisis comes along.
Folks you do not get it. Fannie Mae and Freddie Mac are 90% of the cause of this problem. You have witness over the past 2 months the greatest robbery and mugging in history.
It was a coordinated attack by our friends who destroyed Fannie & Freddie, bailed with $500 million in compensation over 9 execs, followed by picking off one financial company at a time - Countrywide, Indy Mac, Bear, AIG, Lehman, WAMU, Wachovia and on and on. Wall Street is not perfect but they were almost more a victim then a perp. Fannie and Freddie were the perps. Hedge funds were turning on their lenders like Bear and Lehman. Paulson and Chris Cox at SEC were way behind the curve. The hedge funds then turned on their lenders Goldman Sachs and Morgan Stanley and they begged the SEC to save them because the hedge funds (shorts) were all over Goldman and Morgan Stanley. Even the Wall Street investment banks had no clue on how to deal with this coordinated attack.
My guess is this was planned. Our friends trashed Freddie and Fannie and handed out trillions in loans, the plan was to trash the financial system and blame it on the Republicans. Who did it? Soros, hedge funds shorting, backed by offshore money, the Chicago Options Exchange (controlled by allies of Obama including Rham Emmanuel), and others. They made tens and maybe hundreds of billions.
$500 million for Obama’s campaign with a lot from offshore credit cards? No problem.
Saudis get to maintain us as energy serfs even though we have FOUR times the Saudis reserves in shale oil, coal diesel and North Dakota oil which we can get at $30 a barrel. The problem is much is on govt land and by (Dems) laws - we cannot get to it.
Hundreds of billions looting you 401K.
Who got blamed?
We did - Republicans. The guys in a House could not stand up to this. The longer it dragged on, the more McCain slipped in the polls. Our guys had a gun to their head and the public was back the criminals behind it (the Dems). The avg American just wanted it “fixed.” No one has a clue on what really happened. No one could believe it but it happened. This is not tin foil hat stuff either. Where is Obama getting $500 million in campaign cash? Why is a CAIR lawyer defending him in the Berg birth certificate case?
If Obama wins it will be far worse. ACORN and CAIR will be running our elections.
Donate and volunteer for McCain-Palin 2008. We can fight with Pres. McCain after the election.
“I call it a sellout since that appears to be what many in our government did.”
Aided and abetted by some here on “FR”...THE GOVERMENT HAS TO DO SOMETHING! THE SKY IS FALLING!
Got news for some...if the sky is falling, $700 billion is not going to stop it.
No it wasn't. And the voicemails we couldn't leave, the emails that couldn't be delivered, nothing stopped this rape of the taxpayers.
Or wonder if the $700 billion will be a down payment on whatever comes next.
Of course it is. They only nationalized the housing and banking industries. There's still manufacturing, healthcare, and everything else I'm too heartsick to think of, left to go. Bye bye America.
Someone gets it. This was almost ALL Fannie & Freddie. Wall Street for the most part got raped. They did not have a clue and they are not stupid. You think the CEOs at Lehman and Bear Stearns wanted to lose hundreds of millions? A lot of these people were wiped out. They are no saints but they were ambushed and were picked off one by one by the shorts working for their own gain but this was coordinated.
This was a global conspiracy and the bomb was timed to go off a few months before the election.
The stock market is dropping in fear of an Obama presidency.
Bailouts will continue to be a part of our economic life, along with inflation (the great hidden tax), until we extricate ourselves from a financial system based upon a fiat currency and a fractional-reserve lending system.
To me, it is fruitless to debate any other issue. I’ve heard this said elsewhere, “You can’t put lipstick on a pig.” Until the core system is changed you can legislate and pray until you are blue in the face, but you will always come back to economic suffering.
I understand that.
We keep metal neutral. Ali fell fast though. We try to hedge to keep our customers hedges neutral.
You are so right.....this is a stinky plan.
Ali has been based on somewhat energy basis
Some of the firms have backed out of agri, metals, and come tomorrow, what else?
Good for the working American or the trust fund babies?
I know that if I lose my job, within a year or two, my house. I bought my house with the idea that if I lose my job, I have a house payment that can be paid with unemployement or a much lower working income. Is that such a novel idea??? People that bought without the income, I have no worries for them.
If I bought what I was told I could buy? lol.....
I went FHA and am locked in at 5.%
yup and I’m tired of this blame wall street nonsense. Blame congress for meddling in everything.
My personal hero is NJ congressman Scott Garrett. He voted no and he represents many people who work in Wall Street.
I think the markets are smart enough to figure out that if the ‘RATS wrote the Bailout Bill of 2008, it’s not going to be good for anybody but the ‘RATS.
many banks and foreign countries were misled into thinking freddies were risk free investments.
It's tempting to say that the "bailout" is totally pointless, but there are many such instances of financial institutions hanging on by a thread, that have been or will be helped by this. We're in a situation without precedent, and it's huge. Will there be other problems, requiring billions? No doubt there will be. Should we just let it all collapse? I don't think people who advocate such have thought it through. Playing this thing out throught the economy, you'd potentially be looking at problems purchasing and delivering food and fuel due to lack of credit at the wholesale level, which would be devastating.
Do you guys really think the Dow would be higher right now if the House had again rejected the bailout bill on Friday? Didn’t you notice last Monday’s stock market crash upon its rejection? You can legitimately argue that the government’s role is not to support the stock market, but let’s at least concede short-term cause and effect between congressional action and the stock market returns.
Once you admit that govt intervention is a good idea for wall street, you just lost the debate against govt intervention for everything else. And the rest of the world is watching and laughing.
if the House did the right thing (suspend mark to market, repeal sarbox, suspend cap gains tax) then yes. But there was no opportunity to offer an alternative.
>> I hope the market improves, but I could understand it falling further after the Bail out passed.
Sure, there are many reasons for the market to do what it does in the short term. Or, no reason at all.
The driveby media (and more than a few FReepers) were hyperventilating last Monday about how the house NOT supporting the bailout “Vaporized One Point Three TRILLION!!! Dollars In Wealth I Hope All You Bailout Foes Are Pleased With Yourself”. Remember?
Now, that the bailout is passed and signed — that same 1.3 trillion in “wealth” still appears to be “vaporized”. Yet, not a word from bailout proponents about how the bailout might be responsible. Or at least an admission that blaming the big drop on Monday on the lack of a bailout was perhaps incorrect.
That strikes me as somewhat intellectually dishonest.
“Thank you sir may a I please have another!”
Maybe try the Preview button. It will allow you to Preview your post, and allow your to correct spelling, punctuation and other sorts of things.
We’re screwed no matter what.
Oh, a couple of trillion more dollars of fiat money ought ot solve the situation. Jeeze, Louise - let the market correct, folks.
The DOW isn’t what people need to be watching here.
Opening up of credit is the key thing. Last week GE had to pay Buffet an interest rate of 10% plus future valuable stock warrants to borrow money. If GE’s paying 10%+, think of what your local small business person might have to pay this week.
I didn’t agree that this particular bailout plan was the way to go, but somehow massive intervention was/is needed to open up the credit markets.
You didnt think the bailout would actually work did you? I doubt the Treasury has even come up with a plan to buy those worthless houses yet, let alone transferred any money. I think they have 45 days to start....
I have heard several folks credit lines have double to 10% in the past week...that must be the new rate for now. Also, they had their limits cut in half.
“Wall Street wants more free money, f*** them”
Now now, it’s only 850 Billion dollars or 85 x what the entire Iraq/Afgan war has cost to date.
Well I “freed up” some credit by cutting my rarely used card in half and informing them that they don’t need to bill me anymore.
I think we’re going to see pretty flat trading until the market digests what’s happening. 150 down in futures isn’t terrible, and that can - and will - turn on a dime, either tonight or after the market opens.
Yes, and we also noticed that the DOW recovered the majority of that drop the next day when it was discovered that the sky did not, in fact, fall.