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September 29, 2008 / lazybug

Dow Plunges, Bailout Rejected

Yeah well, that may not be the ideal sequence of events, but that’s how I received the two New York Times alerts a few hours back. But what difference does that make anyway.

At 7.43 PM, India Time: Dow Falls 300 Points in Early Trading

Stocks opened sharply lower on Monday, as the near-collapse
of Wachovia seemed to underscore the continuing vulnerability
of banks.

At 11.52 PM, India Time: House Rejects Bailout Package, 228-205

In a moment of historic drama in the Capitol and on Wall Street, the House of Representatives voted on Monday to reject a $700 billion rescue of the financial industry.

Expect some plunges in the Sensex over the next few days, even though our economy is in a good condition.

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9 Comments

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  1. Liju Philip / Sep 30 2008 12:17 am

    Great time to buy stocks after today’s fall. Even better is to invest in mutual funds thru SIP.

    Marc Faber’s prediction about BSE Sensex falling to 10k seems to be almost coming true. He predicted this when the Sensex was around 21k.

  2. chirax / Sep 30 2008 8:29 am

    I already lost my Money 😦

  3. almostinfamous / Sep 30 2008 8:59 am

    actually, there’s a far way for housing and other US sectors to fall still. the credit crisis is only just beginning. i’d stock up on essentials and burrow cash into debt instruments (fixed deposits etc) instead of equity.

  4. Arul / Sep 30 2008 12:01 pm

    Not sure if this is good news or bad news for the US (and consequently India).

    The bailout would have meant putting a debt of $35,000 on each American.

  5. aalasanthosh / Oct 1 2008 1:27 pm

    Congratulations on hitting the 50k mark. 🙂

  6. Chittaranjan / Oct 2 2008 1:19 pm

    A “Revised” bailout plan has been accepted kathe 😐

  7. Arul / Oct 2 2008 3:15 pm

    Its good they did some kind of bailout. Or else, not just the US, but most other countries in the world – including India – would be in the dumps. Everybody is still dependent on the US bigtime.

  8. lazybug / Oct 3 2008 5:15 am

    Well, these may be extraordinary times for the Americans. Had the economy not been in trouble already, something like this would have been left to the markets to solve by themselves. But a combination of factors (Iraq war, job losses, slack growth etc.) has forced the govt. to go for a bailout. This is very ‘unlike’ US and I am not sure this is the last time a step like this will be taken.

  9. almostinfamous / Oct 7 2008 8:53 am

    by all accounts, there is more to come. liquidity, which means actual cash in the market is falling very very short and banks are still not lending to each other. the picture seen is more like a paralysis than anything

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