Why did stock market fall apart as the $700 billion painkiller was allowed through the catheter tube?
Joe Weinman
Oct. 4, 2008

The stock market showed more gloom as the Congress passed the $700 billion rescue plan. There are signs that Dow Jones Industrial Average will fall through the 10,000 mark before the November election. What surprised politicians is the effect on Dow of their thoughtless journey towards national American bankruptcy.

When you borrow on credit card, the debt is closely watched by the credit agencies that rank your FICO scores. But for US lawmakers and the executive branch there are no FICO scores. If there were one, it would be –200. But stock market understood that the bailout provision is just drop in the bucket. The real bailout will eventually cost more than $10 trillion. United States does not have that money. But believe it or now, they will do exactly that pushing dollar to a worthless status and seeding the root cause of multi-decade depression for the whole world.

The 263-171 vote in the House of Representatives, which rejected an earlier proposal only four days before, came after $149bn in tax breaks was added to the bill to help sway reluctant legislators to back the plan.

It was adding salt into insult for average American taxpayers. Reaction on Wall Street turned increasingly negative after the vote. The S&P 500 – which rose as much as 3.6 per cent ahead of the decision – fell 1.4 per cent, closing below its level on Monday after the House voted against the bill. It was the worst week for US stocks since markets re-opened after the September 11 2001 terrorists attacks.

The market moves came as data showed a big fall in US jobs in September. The Bureau of Labor Statistics said non-farm payrolls fell 159,000 last month, the biggest monthly fall since March 2003. The US Treasury also confirmed that California had asked it for emergency funding in the event that credit markets failed to return to normal.

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