Rally fades after House OKs bailout

[PapaG]

We'll be at 9500 for the Dow by election day because of this turd sandwich. But hey, at least everybody got one last bit of pork before election day.

The House of Representatives approved a rescue plan for the nation's financial system, but an early stock-market rally ahead of the vote gave way to a decline as many traders sold on the news.

The plan allows the Treasury Department to buy up to $700 billion in bad assets from banks and other financial institutions. On Monday, the House had rejected a version of the bill, and stocks plunged, with the Dow Jones industrials falling 778 points, its biggest one-day point loss ever.

While the Dow had been up as much as 314 points before the vote, the blue-chip index fell back afterward and was up just 13 points to 10,496 at 2:55 p.m. ET.

http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches-100308.aspx

 

[PapaG]

The Dow dropped almost 500 points AFTER this turd passed the House. It was up 314 and closed at -165.

Gee, maybe the public knew something after all?

 

[SodaPopinski]

The Dow dropped almost 500 points AFTER this turd passed the House. It was up 314 and closed at -165.

Gee, maybe the public knew something after all?

Well, seeing how it dropped 777 points on the day the bill didn't pass last week, I'd say you are giving the public too much credit.

Not to mention nervous investors do not necessarily represent every taxpayer in America (i.e. "the public").

-Pop

 

[PapaG]

Well, seeing how it dropped 777 points on the day the bill didn't pass last week, I'd say you are giving the public too much credit.
Not to mention nervous investors do not necessarily represent every taxpayer in America (i.e. "the public").

-Pop

It rebounded almost 500 points the next day without a bill.

A near 500 point drop after the plan to "rescue" the economy passes doesn't exactly inspire confidence in me.

 

[maxiep]

Well, seeing how it dropped 777 points on the day the bill didn't pass last week, I'd say you are giving the public too much credit.

Not to mention nervous investors do not necessarily represent every taxpayer in America (i.e. "the public").

-Pop

That's not factually true. It was down over 300 when it was assumed the House bill would pass. When it didn't pass, there was the panic sell. That entire 777 can't be blamed on something NOT getting done.

 

[SodaPopinski]

It rebounded almost 500 points the next day without a bill.

Normal reaction to a huge sell-off. Speculative traders scooping up bargain basement stocks.

A near 500 point drop after the plan to "rescue" the economy passes doesn't exactly inspire confidence in me.

Nor me. But I think you're going to have to wait a few days before judging the market's response. Besides, there was also another fairly big announcement today that had an impact on the stock market.

-Pop