September 29, 2008

The House has blocked the $700 billion bailout of financial institutions that was anticipated to pass by an original deadline of last night.

The intention was to stabilize the stock markets as they would open this morning to news of a "solution" to the subprime crisis. Instead the Dow plunged almost 700 points today after Congress's surprise 228-205 defeat of the bailout backed by President Bush and Congressional leaders on both side.

Bank stocks are likely to particularly suffer from the markets decline, as the financial sector's future remains uncertain. The Dow is down about 667 points today at the 10,475 level.

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