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Markets Dive Following Paulson Remarks

A day that began with a 200-point loss on the Dow -- losses that were largely recovered during trading -- ended with a 189-point loss in a sudden dive in the 15 minutes following the conclusion of remarks by Treasury Secretary Hank Paulson, who delivered a "here's where we are" speech this afternoon.

The Dow closed down 2 percent. The S&P 500 closed down a little more than 1 percent; the Nasdaq, a little less than 1 percent.

Maybe Paulson should wait until 4 p.m. -- when the markets close -- to deliver his next speech.

What caused the last-minute Dow dive?

Possibly this line from Paulson's speech: "We expect it will be several weeks before our first purchase" of the toxic assets using the $700 billion Wall Street bailout/rescue plan.

Maybe that's not soon enough for Wall Street. On CNBC, some traders are asking, "What will it take to restore confidence in the markets?" Yet it's the traders themselves who push the markets to their extremes.

Or maybe it was this line: "It's too early to look for encouraging signs in the credit market."

What we do know is that Wall Street seemed to pay little attention to these lines from Paulson's speech:

- "I remain confident that we will work through this challenge," and "Despite our problems, the U.S. economy is the largest and wealthiest in the world."

-- Frank Ahrens

By Frank Ahrens  |  October 8, 2008; 4:15 PM ET
Categories:  The Ticker  
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If I were Paulson, I would be confident, too. After all, he walked away with around 500 million when leaving Wall Street. When he leaves the Bush White House, he'll still be worth 500 million. Not bad for somebody who screwed the pooch from both sides.

Posted by: Diogenes | October 8, 1908 4:36 PM | Report abuse

Join the Republican Party, support our policies, activities, and agenda, (especially our dominance in local and national government) elect Senator McCain & Governor Palin (She WILL become the 45th President of the USA) and you & your family can benefit, profit, and prosper, as we have as Republicans, the past 8 years in this country.

Deliberate manipulation of the Global Free Market Economy Financial Markets and designed global orchestration of corporate rescues and bailouts have been designed and implemented to shift more wealth to us, maximize profits & prosperity for American citizens that are active Republican Party members nationally, and our like minded allies globally, before and after our planned coming war with Iran.

This activity is purposely designed to benefit active American Republican Party members nationally and our like minded, New World Order allies globally ONLY. It will consolidate and secure our global financial power and hegemony once and for all, within the next 4 years.

If you and your family want to benefit, profit, and prosper too, you need to join us in the Republican Party and elect Senator John McCain, the 44th President of the United States and Governor Sarah Palin, the 45th President of the United States of America.


Posted by: american_patriot | October 8, 1908 4:38 PM | Report abuse

Obama, McCain, Hillary, Biden, and many others voted for the infamous Paulson-Pelosi bailout.

Posted by: Scooby | October 8, 1908 4:59 PM | Report abuse

There are like 4,000 terrorist computer programmers out there, maybe more, doing who knows what on these supposedly secure networks and you look at the data and it goes from one thing to the next. Data is moving faster than events or people and nobody can keep up, as if it's worth keeping up with. Go private and stay private or keep racing a losing race. Tech is great, it isn't cash though.

Posted by: Anonymous | October 8, 1908 5:00 PM | Report abuse

I saw a chart today that was so deformed that you wonder if somebody just made up numbers, loaded them into a program to see what would happen or something. Then the logic is that if you're so smart you would be rich. If we rig up more computers, we won't need to think and can automate the bailout. Don't get rid of your papers and books. Now all these systems are great for counting your losses. I found a new car online today. All I need now is more cash.

Posted by: Anonymous | October 8, 1908 5:17 PM | Report abuse

There was a jet on the news that went up, then plunged out of control while tossing everybody around the cabin. Maybe another computer glitch. The pilots have to deal with the things too. It's as if we are being slowly killed with software. It's like a rat trap and you madam and sir are all in it. $2 trillion in retirement funds lost. The whole baby boom is looking like a bust and a few guys made a couple of trillion dollars. I have some red ink here. Then there's all the evoting and other bad ideas. Keep publishing and keep growing it real. Do what you want to do.


Posted by: Anonymous | October 8, 1908 5:41 PM | Report abuse

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