Congress Rejects Bailout Plan

All markets moved sideways today waiting with baited breath to see what’s going to happen with the bailout.

In the news today….

The main news today was that Congress rejected the Paulson/Bernanke $700B bailout plan. Sen. McCain stopped his campaign to work on the bailout exclusively – even cancelling Friday’s debate. Sen. Obama said he would work to get a bailout plan through Congress – but wants the debate on Friday. At least politics continue. Pres. Bush will be talking about this issue tonight to get pressure on Congress to pass something.

Is this a serious issue? Yes. You probably heard that McDonald’s can’t get a loan to put new coffee machines in its stores across the US. Why? Banks won’t loan money to anyone for any reason. This is very serious. My bet is that Congress will pass something – there is just too much at stake. When? Next week.

Here are Today’s numbers:
Dow Jones 30 Industrial - 10,825 (down 29 points)
10 Year Treasury Bond - 3.77% (down 0.07%)
Euro - $1.4621
Gold - $895 (up $4)
Oil - $105.73 (down $0.88)
Gasoline - $2.59 (no change)

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This entry was posted on Wednesday, September 24th, 2008 at 6:10 pm and is filed under U.S. Economy, U.S. Government. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Congress Rejects Bailout Plan”

David on September 24th, 2008 at 10:58 pm

I watched some of the Senate testimony by Paulson and Bernanke the last 2 days. The committee members were rightfully skeptical of an essentially blank check to bail out bad bets.

Paulson sounded more desperate than normal and Bernanke looked tired and uninterested.

I keep waiting for a limit down day on the Dow. We are due for one.

Scary times. I had a conversation with someone today about the 4 G’s. (Guns, Gasoline, Gold, and Groceries). It may be getting close to time to stock up just in case.