Black Monday? [Dow takes largest single-day drop in history]

[Speedo]

http://money.cnn.com/2008/09/29/markets/markets_newyork/index.htm?cnn=yes

NEW YORK (CNNMoney.com) -- Stocks skidded Monday afternoon, with the Dow's nearly 778-point drop being the worst single-day point loss ever, after the House rejected the government's $700 billion bank bailout plan.

Stocks tumbled ahead of the vote and the selling accelerated on fears that Congress would not be able come up with a fix for nearly frozen credit markets. The frozen markets mean banks are hoarding cash, making it difficult for businesses and individuals to get much-needed loans. (Full story)

According to preliminary tallies, the Dow Jones industrial average (INDU) lost 777.68, surpassing the 684.81 loss on Sept. 17, 2001 - the first trading day after the September 11 attacks. However the 7% decline does not rank among the top 10 percentage declines.

The Standard & Poor's 500 (SPX) index was down 8.7% and the Nasdaq composite (COMP) 9.1%.

"The stock market was definitely taken by surprise," said Drew Kanaly, chairman and CEO of Kanaly Trust Company, referring to the House vote. "If you watched the news stream over the weekend, it seemed like it was a done deal. But the money is being held hostage to the political process."

Stocks had fallen from the get-go Monday morning. In addition to expectations for the bailout, there was also news that troubled Wachovia had to sell its banking assets to Citigroup. A number of European banks also collapsed.

But the possibility that the House won't pass the bailout plan caused stock losses to accelerate.

"It's a huge disappointment," said Jack Ablin, chief investment officer at Harris Private Bank.

Ablin said the fact that stocks were down more than 200 points this morning ahead of the vote indicated that there was already skepticism that the plan would pass.

Although another version of the plan will likely go before Congress, investors are concerned that passing the bill could be a more drawn-out process.

And they are worried about how effective the proposed plan would be anyway, said Alan Gayle, senior investment strategist at RidgeWorth Investments.

"We are charting new territory in policy tools and implementation with this program and there's no guarantee that it will work," Gayle said.

"That a number of institutions haven't been able to last through the negotiations adds to the uncertainty," Gayle said, referring to Washington Mutual's failure on Friday and the buyout of Wachovia Monday.

Stocks are also extremely choppy and volatile as Wall Street moves to the end of the third quarter. Financial institutions and funds are expected to have their books settled before Wednesday, so there is a lot of last-minute scrambling, Gayle said.

Treasury prices rallied, sending yields lower, as investors sought safety in government debt.

A sign of worse things to come, or..?

 

[Rashiminos]

Someone around here linked a worse drop by percentage in another thread that occurred on a Monday in '87.

 

[FriendlyFire]

On Monday, the Dow finished lower than when George W. Bush assumed the presidency: 10,587.59 on January 19, 2001 compared to 10,365.45 at its close on September 29, 2008.

NASDAQ, the American stock exchange, too, was lower now than it was when Bush took office: 2770.38 on January 19, 2001 compared to 1983.73 on September 29, 2008. The dollar exchange with the Euro was lower than when Bush was elected: 1.068 on January 19, 2001 compared to .695 on September 29, 2008.

Some things have risen, but not the good economic indicators. The Consumer Price Index was at 175 on January 19, 2001 and 219 by September 29, 2008. Unemployment, meanwhile, stood at 4.2 percent when Bush came into power. Today, it is at 6.1 percent.

http://www.huffingtonpost.com/2008/09/29/stock-dive-is-bookend-of_n_130398.html

I wonder how bad the whole thing is.

 

[fishjie]

I wonder how bad the whole thing is.

other foreign markets have been getting PWNED as a result too

http://biz.yahoo.com/ap/080929/eu_europe_banking_crisis.html

 

[emzie]

Someone around here linked a worse drop by percentage in another thread that occurred on a Monday in '87.

House is out of session until Thursday. If you see this fail again....

 

[Bigfoot3814]

Depression doesn't scare me!

 

[MobBoss]

Single largest drop yes. Not the largest drop by percentage however.

 

[Alpine Trooper]

Soundgarden - Fell on blacks days

Whatsoever I've feared has
Come to life
Whatsoever I've fought off
Became my life
Just when everyday
Seemed to greet
Me with a smile
Sunspots have faded
And now I'm doing time
Cause I fell on
Black days

Whomsoever I've cured
I've sickened now
Whomsoever I've cradled
I've put you down
I'm a search light soul
They say but I can't
See it in the night
I'm only faking
When I get it right
Cause I fell on
Black days
How would I know
That this could be my fate

So what you wanted to see good has made you blind
And what you wanted to be yours has made it mine
So dont you lock up something that you wanted to see fly
Hands are for shaking
No, not tying
No, not tying

I sure dont mind a change
But I fell on black days
How would I know
That this could be my fate

http://ca.youtube.com/watch?v=nI27c7MrKiA

 

[emzie]

Single largest drop yes. Not the largest drop by percentage however.

If you lose $100,000 over a month or in one day, you're still out a hundred grand.

 

[MobBoss]

If you lose $100,000 over a month or in one day, you're still out a hundred grand.

As Warren Buffet once said 'its all just paper'.

 

[Alpine Trooper]

The Mamas & Papas - Monday Monday

Monday Monday, so good to me,
Monday Monday, it was all I hoped it would be
Oh Monday morning, Monday morning couldn't guarantee
That Monday evening you would still be here with me.

Monday Monday, can't trust that day,
Monday Monday, sometimes it just turns out that way
Oh Monday morning, you gave me no warning of what was to be
Oh Monday Monday, how yould cou leave and not take me.

Every other day, every other day,
Every other day of the week is fine, yeah
But whenever Monday comes, but whenever Monday comes
You can find me cryin' all of the time

Monday Monday, so good to me,
Monday Monday, it was all I hoped it would be
Oh Monday morning, Monday morning couldn't guarantee
That Monday evening you would still be here with me.

Every other day, every other day,
Every other day of the week is fine, yeah
But whenever Monday comes, but whenever Monday comes
You can find me cryin' all of the time

Monday Monday, ...

http://ca.youtube.com/watch?v=H7KrlDZ5Hkw

 

[emzie]

As Warren Buffet once said 'its all just paper'.

Easy for Buffet to say; I don't see him losing his home or retirement account.

 

[FriendlyFire]

As Warren Buffet once said 'its all just paper'.

Start praying Mobboss cause its in Gods hands again.

Warren Buffett “Heaven Help Us”

When I asked what might happen if the $700 billion dollar rescue plan failed to pass, he said, “Heaven help us.”

http://liz.blogs.foxbusiness.com/20...bn-heaven-help-us-if-rescue-plan-doesnt-pass/

"First of all, I don't see America having problems." --George W. Bush, interview with Bob Costas at the 2008 Olympics, Beijing, China, Aug. 10, 2008

 

[JollyRoger]

As Warren Buffet once said 'its all just paper'.

Also said by Sam Walton in October 1987 just after he became the first to lose a billion in a day and just before he started laying off workers.

 

[Perfection]

Right on time for the end of the month, when Perfy's Roth IRA makes its first buy.

 

[Ecofarm]

Rumor is, wall-street is trying to force the bailout. Screw them.

 

[fishjie]

still learning how to edit photos but here is my best PWNED pic

 

[Stylesjl]

Look at it fall! Maybe it's a good time to buy up some nice, cheap stocks and wait for the recovery

 

[JerichoHill]

Spreading rumors with no basis in fact and then basing your judgement on said rumor is a poor way to make decisions ecofarm.

Guess what? Wall Street lost alot of money. So did everyone with a 401K. A very large point drop, but not the worst one day drop (that would be black monday)

 

[RedRalph]

Spreading rumors with no basis in fact and then basing your judgement on said rumor is a poor way to make decisions ecofarm.

Guess what? Wall Street lost alot of money. So did everyone with a 401K. A very large point drop, but not the worst one day drop (that would be black monday)

thank jaysus, I was beginning to wonder if you were still alive