Though the bill may have been defeated for the wrong reasons—like the lack of freebies, giveaways, and handouts that many on the left had hoped for—the defeat of the bailout bill in the House has brought stocks out of their decent. The Dow Jones is now climbing.
But how can this be? How could a bill that was designed to save our economy, our country, and the world be the cause of the Dow’s drop today? Easy, the bill was introducing such incredible uncertainty into the market that investors were panicking.
It could also be that Wall Street—despite the recent bank closings—is still smarter than Washington. The reactions of investors suggests they realize the bill may have done more harm than good.
For more on why a defeated bailout bill is a very good thing and why the world doesn’t need saving, read John Berlau in today’s American Spectator.
Stay tuned to OpenMarket for John Berlau’s reaction to the bailout bill’s defeat. Also, check out our Bailout Watch page at CEI.org.
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With all due respect the Dow is not (at this minute) climbing. It is dropping further. I expect the markets to lose a lot of points, although I agree the bailout should not happen. I expect short-term pain, and so should everyone else. But it is the right thing to do.
The dow bounced up quite a bit immediately after the gavel came down on the vote. There has been a fall from that bounce, but the DJI is climbing again. We're well above the bottom from earlier today when the bailout seemed eminent. My point remains valid: the Street doesn't want the bill.
It's worth noting that the Dow ultimately ended about 300 points below where it was when this post was made. I haven't the foggiest idea what this means, though, given that in spite of bailout bill's failure Congress is likely to revisit the issue in the coming days.
What we all need to learn is to stop treating the DOW like it is the sole indicator of the economy. Someone on the side of free markets needs to speak to the obvious: the market is hardly the most rational actor we make it out to be. So the DOW plummetted. We've seen this type of volatility for some time.
The sooner we get the nation to stop judging economic health of the nation by the DOW (and daily changes thereof) the better off we will be.
Uh, excuse me?!? Every other media outlet has said the EXACT OPPOSITE of what you just said. Please tell me you're not one of the greedy, crooked stock market traitors….plzzz….