The government brokered a deal for Citigroup to take over Wachovia that was doomed to fail.
The House of Representatives did not pass the Administration's bail out bill.
The Dow Jones Industrial Average closed at 10,365.45, down 777.
From the Los Angeles Times:
How bad will it get without a bailout?
House rejects historic rescue as markets take a record dive
Leaders scramble to regroup after deal crumbles under partisan rancor
WASHINGTON — The historic effort to rescue the U.S. financial system was thrown into doubt Monday after the House rejected a $700-billion emergency plan, causing the most devastating stock market collapse in 21 years and the deepest one-day point dive ever by the Dow.
Stunned leaders of both parties and the White House scrambled to put together a new remedy after the legislation that was widely expected to pass the House fell victim to partisan acrimony....MOREDow plunges a record 777
...Prices of oil and other commodities, already down early Monday on fresh concern about the global economy, accelerated their slides after the House vote. Crude futures tumbled $10.52, or 9.8%, to $96.37.Grand jury probes Fannie, Freddie
The day began with global stock markets falling on the new signs of financial stress in Europe and fears that the rescue package wouldn't quickly ease a logjam in the credit markets or stave off a deep economic downturn....
'No' vote could hit you in your 401(k)
Apple shares fall 18% on consumer spending fears
Asian stocks follow Dow
What we were posting:
Bailout: House Republicans Dig in Heels, Ask Paulson for Receipt
Wachovia Roundup (WB)
Iceland: Bailout and Failure
On a lighter note:
Iceland on High Alert
..MARAUDING polar bears could cause terror on Iceland after experts claimed global warming could bring the killer beasts across the sea....The Viking Kittens sail forth to battle the marauders:
...Climate expert Thor Jakobsson said: "Since two have reached the shore, more could be on the way."Thor is calling for aerial surveillance of the ice, as well, to protect the Icelandic population:
“Since two bears have already reached the shore, more could be on the way, but there’s no telling whether this trend will continue in the coming years....
Solar Stocks Clobbered; No ITC Extension Before Election
House Votes Down Bailout Bill; Dow Down 701. AND: The New Biggest Risk of All – DEFLATION
Bailout: Cantor Blames Pelosi, Boehner Blames Jews
"Don't panic - just a temporary crash floe problem."
Overheard on the Titanic.
Get Ready For a Relief Rally. And: How Bad Can it Get
Today's 777 point loss on the DJIA is the largest point loss ever. I don't think it is in the top ten largest percentage losses, I haven't looked. However, as Tech Trader Daily points out, the Nasdaq's losses definitely are. A sixty percent retracement of today's (and tomorrow's?) decline is well within the bounds of possibility (I won't go all Fibonacci on you). Then lower....6:04 p.m.
How bad was Monday, really?
Lehman's Demise Triggered Cash Crunch Around Globe
Ireland becomes first euro-zone nation in recession (New Zealand First in Pacific)
Homeowners with Negative Equity
Fed Pumps Further $630 Billion Into Financial System
Bailout: "Climateer Sure Was Wrong on His Congressional Bet"
Just five days ago we posted:
Odds Of Government Bailout By End of Month at 80%
DO NOT make investment decisions based on this factoid. (that said, I think the odds are closer to 100% and should probably get a bet down on the mispricing)Today Bespoke Investment Group shows us how the contract performed...MORE