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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Dow: Worst One-Day Loss Since 9/11

Wall Street's response to the House's rejection of the $700 billion Wall Street rescue plan was unambivalent: Panic.

The Dow closed down 777.68 or 7 percent, the worst one-day sell-off since the days following the terrorist attacks of Sept. 11, 2001. The Dow hit its lowest levels since November 2005.

The S&P 500 closed at its lowest levels since 2004, showing the biggest one-day drop since 1987.

The Nasdaq closed down more than 9 percent. It was the biggest one-day drop in the tech-heavy index since the dot-com bubble burst in April 2000.

Investors ran to safety, pushing the price of gold up $32 an ounce today. The price of oil fell $11 to $96 a barrel.

In an interview on CBNC as the markets were closing, fund manager Larry Fink, chief executive of BlackRock, which manages more than $1 trillion, said: "I think Congress is playing with fire. We need help and we need to get this resolved quickly."

He added: "I find it abhorrent that this is being characterized as a bailout of Wall Street. This package is a bailout of Main Street. If we don't resolve it, Main Street is going to feel very ill effects."

-- Frank Ahrens

By Frank Ahrens  |  September 29, 2008; 4:26 PM ET
Categories:  The Ticker  
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Comments

The stock market would not have seen such a big one-day hit if House Republicans had stuck to their word in supporting the bailout bill. Investors began the day believing there was a bailout deal, and ended it with the House Republicans leadership saying their guys were going home to campaign. Investors are deserting the market in droves to buy up T-bills, which is ironic -- Republicans have shown that government can't be trusted to follow through on its promises, so now it's time to buy government bonds.

Posted by: PG | September 29, 1908 4:28 PM | Report abuse

Sounds like a threat to me, Mr. Ahrens!

Posted by: Pam | September 29, 1908 4:33 PM | Report abuse

Main St can take it, we're tough! Last time something like this happened it was WAll ST Jumping out of Windows! GO TO HELL!

Posted by: Main St. VS Wall St | September 29, 1908 4:35 PM | Report abuse

Shall we call these two days the Bush Administrations Bookends.

Posted by: Doom! | September 29, 1908 4:40 PM | Report abuse

No no no it's WS that has been playing with fire! Now they want want main street money to help rebuild their mansions? NO!

Posted by: Anonymous | September 29, 1908 4:49 PM | Report abuse

"I find it abhorrent that this is being characterized as a bailout of Wall Street. This package is a bailout of Main Street. If we don't resolve it, Main Street is going to feel very ill effects."


Well Mr. Wall Street, we find it even more abhorrent for you to claim that this is not a bailout of Wall Street but of main street instead. Main street will survive.

Posted by: Anonymous | September 29, 1908 4:54 PM | Report abuse

Doom! Excellent comment!

No matter who becomes prez, it's going to be VERY tough, the world is in a complete mess, yeah, thanks Bush. Like he or McShame has to worry about it. Geez!

I think the bailout is a disaster, no matter how you look at it. But we're damned if we do, damned if we don't. Thanks, Wall Street. Are you now going to pay for my mega loss in my 401k and IRAs? It's so hard to figure this one out as to what to do. I think we can take it - depending on your age. We're close to retirement and can't start over again. ARGH!

Posted by: Jen | September 29, 1908 4:54 PM | Report abuse

I'm glad people are happy that they were saved roughly $2500 per person by having the bill voted down. Lets see how happy all of them are when they lose way more than that in home values, retirement accounts, loss of income from more lost jobs, and possibly lost savings.... good judgement!

Posted by: Anonymous | September 29, 1908 5:00 PM | Report abuse

May all the voters memories remain intact when all the current congressmen and senators come up for re-election. Then the voters can send their message.

Posted by: Dick B | September 29, 1908 5:07 PM | Report abuse

The stock market is emotional and it didn't get what it wanted. The only bill I want to see in front of the Congress is the one that holds people and companies accountable for this mess. No more golden bailouts for executives that took multi million dollar golden parachutes. It is time to retrieve the money these executives stole from its investors.

Money will not fix this problem so why do we need to keep throwing good money after bad. If you are an investor keep an eye on the market and get ready to buy. We have not hit the bottom yet and when it does you need to be poised for it by investing. The market will correct itself. Congress needs to address legislation to assure the main street folks that Wall Street will be held accountable for their greed.

Posted by: Debbie | September 29, 1908 5:12 PM | Report abuse

Let me see now:

Republican president seeks emergency bailout
Republican Treasury Secretary sent to persuade Congress
Republican owned financial institutions at risk
Republican administration’s economy crumbling
Republican candidate for president claims he saved the day
Republican members of Congress kill the bill
Republicans at all levels blame Democrats


--------

Posted by: It's all Obama's fault !! | September 30, 1908 9:21 AM | Report abuse

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