Wall Street Dives To Close

With about 10 minutes left on the trading day, the markets continue to shed value.

The Dow is down nearly 400 points, or about 4 percent.

The S&P 500 and Nasdaq are both down about 4.5 percent.

The markets were buoyed, briefly, by the Fed's announcement this morning that it would buy up short-term debt, but the good news didn't take.

Any number of individual reasons could contribute to today's dive, but more than likely Wall Street has now moved beyond the $700 billion (plus $150 billion more in tax breaks, etc.) Wall Street bailout/rescue plan signed by President Bush last week.

Which means Wall Street is now trading on the underlying fundamentals of the U.S., and global economy, which are weakened.

-- Frank Ahrens

October 7, 2008; 3:50 PM ET  | Category:  business
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NEWSFLASH, Washington - In a surprise televised announcement this morning from the Whitehouse Oval Office, President George W. Bush told a hastily gathered nation that he was going to request another 900 BILLION dollars this coming week. He explained that due to the cool response to the 700 BILLION he received last week for his BAILOUT PROGRAM, he has decided to inject another 900 BILLION dollars into the U.S. financial markets in the form of a RESCUE PROGRAM to save his BAILOUT PROGRAM.

The President didn't take any questions from reporters, but presidential spokesperson Dana Perino told reporters, "It is the Presidents understanding, that since the United States government owns it's own printing presses, as long as we have the ink and the paper, we can print as much money as we need without hurting the economy. The President believes that will only get in financial trouble if we sub-contract out our money printing to an organization such as Kinkos or EZ-SpeedyPress, and that would be due to the excess delivery charges these companies would tack on when shipping our order back to us."

When asked if this 900 BILLION dollar RESCUE PROGRAM to save the 700 BILLION dollar BAILOUT PROGRAM would be enough, Ms Perino, said, "The President understands the international monetary market very well, in fact, he's a financial genius. He has told me that if we need to print 1,000 BILLION more dollars and create a new STIMULANT PROGRAM to pump money into the RESCUE PROGRAM which is to save the BAILOUT PROGRAM, he will do it. The President is committed to this incredibly noble cause. The President has also stated that he and the vice president each have refused to accept anything over 250 million cash in small unmarked bills payment for their efforts in saving this country during it's darkest financial hour. The president also said that he and the vice president didn't want to accept any money for their effort here, but to quote the president, "If the vice president and I didn't accept some form of 'token' payment, I know the taxpayers would be insulted, because they know we work very hard for them." The president also blamed the Democrats for this financial mess."

Posted by: FozzieBear | October 7, 2008 4:14 PM

It's the Republican economy stupid!
Obama/Biden...we need change now!

Posted by: Dan | October 7, 2008 4:14 PM

I'm 24, I have 40+ years until retirement, and even I'M concerned about the savings I have tied up in mutual funds. I can't even imagine how excruciating this must be for those within a few years of retirement.

Posted by: ManUnitdFan | October 7, 2008 4:15 PM

ManUnitdFan- I'm with you. I know that my parents in their 60s are getting killed. I feel horrible for them.
What bugs me the most is when this $700 Billion bailout was signed in, Of course, lost in all this nonsense is one forgotten word: DEBT. This administration's unprecedented, eight-year spending spree has culminated with passage of this $810 billion bailout package. George W. Bush's tenure-which featured massive increases in government spending--has led to the national debt ceiling being raised seven (7) times! In fact, the limit on the nation's debt has now been authorized to reach $11.315 trillion.
And.. Really do we need all the pork that's in that bill? Probably not!
Here's a piece that exposes it all:
http://www.greenfaucet.com/economy/porky-the-bailout-bill/19680

Posted by: Graham | October 7, 2008 4:30 PM


let's see.. we need to raise money.

hmmmm.... i got it!

we can sell alaska back to russia! and to sweeten the deal, we can even offer to throw in the entire palin family!

oh wait. then they won't want it...

we just won't tell them that it's a package deal.

:)

Posted by: FozzieBear | October 7, 2008 4:35 PM

You had a little bump up at the end of the day. It sure has been a bumpy ride. It's looking like a long night here. Who knows, you could be back to 600 by the end of the year. Anything is possible. We're charting new territory here. It looks worse for some of the other newspapers and it could get much worse before it gets better. In any case, Wall Street is a wreck.

Posted by: JD | October 7, 2008 4:57 PM

I wonder how the markets will react to the £50 billion UK bank rescue plan leaked by the BBC tonight. Although the detail is not out, it looks like a nordic style rescue that will amount to a partial nationalisation of the uk banks, with the UK government buying shairs and providing the money to allow the banks to lend to each other.

Posted by: psymon | October 7, 2008 6:46 PM

You might have to close the print shop and lay people off. It looks bad. Real bad.

Posted by: deflag | October 7, 2008 9:15 PM

Look,we need to find a way to fix this befor more people lose there jobs and saveings..The solution is simple..!


elect:John Mccain-Sarah Palin

clay

Posted by: clay | October 7, 2008 11:47 PM

It looks better now or kind of better. Watch interest drop. Don't panic and keep printing. I'm counting on dumb luck or some luck. Less is more or less. Good luck Post. It's morning paper time.

Posted by: Anonymous | October 8, 2008 7:26 AM

By 10/10 we might be up for good. Remember that down is bad and two days can bring about challenges if you make a difference. I'll keep watching. Crisis can't last as long as opportunity. It's the land of opportunity here.

Posted by: Anonymous | October 8, 2008 7:32 AM

One Question:
As long as a debt is owed by one American company to another American company; Why not forgive the debt?

Posted by: Donulvi Dolam | October 8, 2008 8:45 AM

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