The Bailout Fallout

The day for the vote on the bailout has come and passed. The vote went to a slight majority against the bill and the bailout was not carried out. Weather or not this is a positive thing is yet to be seen. The sudden shock of the bailout being turned down kicked up some very high ripples and the effects of it may yet be seen far into the future. The bailout was not as much a boost to the economy as much as a boost of hope to many investors that the large down trend may be reversed. This hope was nurtured by promises of a renewed economy causing many investors to.. invest. This slight balance and leveling and even small uptrend was a relief for a scared public, distraught by their portfolios. With the no vote on this bill, the people realized that there would be no uptrend and began to sell.. extremely quickly. Within 6 minutes of the failed bill the Dow index dropped over 260 points, and continued to drop to over 750 points in a single day. The largest ever single day market value drop in the history of the United States. All 3 major indexes lost over 7% of their total value totaling up to over $1.1 trillion in loss across the boards. The impact of this no vote also triggered rather quickly a reconsideration of the bill, a similar one of which is currently in debate. This reconsideration, and the record low levels of the stocks after yesterday has sparked another large reaction in the opposite direction. With hope renewed and record low prices, investors made today a record day as well gaining over 60% of the loss back with an increase of almost 500 points, the third biggest gain in US history. This huge bump will hopefully cause more people to look at this and maybe get more focus on this by the government, allowing them time to make a decision rather than jumping on, or off, the bandwagon. The next quick decision might not make such a rapid recovery.