It did not take long for Wall Street to react to the decision of the House to reject a proposed $700 billion financial bailout package that is supported by the Bush administration, the Federal Reserve and congressional leadership of Democrats and Republicans. The vote was 207 for and 226 against the plan, with the main criticism being that the bailout package would provide unjustified support to the companies that created the crisis.

Both the NASDAQ and Dow Jones were hit hard by the decision. While the Dow tumbled 700 points initially and quickly recovered to a loss of about 500 points, the tech-heavy NASDAQ index lost more than 140 points or 6.5%.

Apple was leading the decline in the tech sector, with a stock that was down about 19%. AMD followed with a minus of almost 17%, Google with 11%, Nvidia with almost 10%, Sun with 9%, Intel with 6%, Microsoft with 6%, HP with 6%, Yahoo with 5%, and Dell and IBM with 4%.

Buy Now!

Sep 29, 2008 14:12     

Now would be the opportune time to buy these stocks since many of the companies mentioned will almost certainly recover. It may get worse in the coming months, but compared to historic averages, the market will go up again eventually.
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Prepare for the Dow to hit 8,500...

Sep 29, 2008 16:00     

Great Depression 2... Nough said...
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Re: Buy Now!

Sep 29, 2008 16:12     

You realize, of course, that this is precisely the philosophy that got us into this mess in the first place? Home prices "always" go up, so buy now! The market will most likely recover after some indeterminate period of time, and stock prices will likely continue rising in general, but not all stocks will recover. We're just past the tipping point - things are going to get a lot worse before we hit the bottom. Some of these companies - especially ones in precarious financial positions (AMD, for one) - might not make it out of the recession intact. Buy now if you really want to take that risk (and watch your portfolio tank over the next year or two), but you'd be better served keeping your cash in a safer short-term investment and then buying when the economy starts to recover.

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Long Term Bargains on Stock, but Short Term, hold on for the Ride.

Sep 29, 2008 17:10     

I agree, that the stocks will go up, but only in the long term as the economy unwinds from the fatal poisons in its system. Money and credit will need to free up by natural market forces rather than the injection of cash, which the Congress could have injected. There will be companies that struggle, jobs will be lost en masse and the resulting business depression will take a long time to recover from. After all, the 1929 crash eventually got better too, but it took a lot of misery, 20 years and a World War to establish any sort of prosperity. So, buy those stocks at the current bargain price, watch them dig much much deeper and maybe in 20 years it will be a great value. The only winners today is the short sellers.

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blah

Sep 30, 2008 01:11     

You know where that very important $700-billion figure came from? Here's a quote from that Forbes story: "It's not based on any particular data point," a Treasury spokeswoman told Forbes.com Tuesday. "We just wanted to choose a really large number."
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It was the right decision

Sep 30, 2008 06:56     

When you think about the kind of debt the US has then it was probably wise not to imagine $700Bil out of thin air into the system.
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