Dow Jones Stock Market 777 Point 7% Crash

This defeat of the so-called bailout plan is temporary. The plan will be tweaked and another vote. You seriously do not think that the Wall Streeters who gave us this disaster will take a hit when they can sock it to America AGAIN.

An interesting but not totally unexpected outcome - now the real deals can start - no more golden handshakes, no more bonuses, and no more inventive financial tools. House ownership will again (eventually) become affordable to those with average jobs and social housing for the rest. Capitalism has failed 20 years after its old 'prop' Communism - the US now has to contend with two wars, The Euro, China and a bust financial system. Spiritually you can make it but the next ten years will be tough for some. But if the rest of the world no longer considers you worthwhile saving we'll let you go under - Good Luck.

Seems to me the tides have turned and the people have to ride the wave.

Wall Street and their lobby and their media will be coming back strong. They will be extorting and pressuring each congressperson. They will be buying them as well.

There were a lot of people on the streets, and they are on the blogs and the websites like www.nowallstreetbailout.com.

If Americans keep up the pressure, you can bring down the beast.. You really can. KEEP UP THE PRESSURE. on the congress and on the blogs. Email all your friends and relatives.

Speak frankly and let the truth snowball. It kicked some ass today.

There is no cure. No "bail-out" will solve their problem. Printing worthless money will only make the situation worse and the revolutionary working class tide that much stronger

Truth of the matter looking at the economic collapse as being a product of the sub-prime mortgage deals is a mistake. Sub-prime is being used and blamed to hide the truth of the matter.

The reality is that sub-prime is just one expression of the classic mode of failure of capitalist economics, i.e., over production of commodities in a market already saturated.

In this case the commodity is money itself. An expression of that fact is that in recent years, rather than value a company on the basis of production and sale of commodities, cars, radios, shoes, televisions, etc., profit and loss related to production and sales, companies have been valued on the basis of return of money value of its stock.

In order to keep that going laws limiting the use of borrowed money to purchase stock have been eliminated. As well interest rates were driven down in order to prop up commodity purchase not least of which was money commodities.

In that vein, risky sub-prime mortgages, the increase of sub-prime directly related to the drying up of a saturated housing market for qualified buyers, were only the beginning of the process of developing derivatives, the bundling of sub-prime derivatives into securities being only one form of derivative.

The natural drive to continue proffitting in a market consisting of the money commodity is no different then continuing to try and profit from production of automobiles in a market for automobiles that is already saturated.

Given all those circumstances the lowering of interest rates gave rise to increased house values as the market expanded based on cheap money and the constant hit by home owners on the increased value (But really an illusory value as we are now seeing as house prices start to collapse) and the increase in indebtedness thus generated.

Again! This is the classic periodic collapse, as opposed to the seven year business cycle, caused by over production (Cheap money) for market. Right on time, every 60 or 70 years, if you figure from the end of the great depression of the 20's and 30's, i.e., the beginning of the Second World War, just about 69 years.

This developing collapse will leave no choices other than barbarism and war or Socialist Revolution.

http://www.wrp.org.uk

Jack Jersawitz

The market lost $1.2 trillion in one day of the fabricated meta-meta-meta-meta paper wealth. Can anyone not see that the market is now "discounting" the default of the US government? Remove the boundaries between government and corporations, and if one goes down, so goes the other. Over 20% of our "on paper" GDP is the "financials". And over 20% of our government expenditures go to interest on the national debt. I guess Congress can reinflate the credit and housing bubbles, so the national debt will become relatively smaller? Texas law says you can shoot adulters legally if they have their shoes off. So I guess, since its right before an election, government and private "industry" have gotten caught in the bedroom together with their shoes off. Someone is afraid that aggrieved will shoot to kill. All the little piggies in Congress have been slopping at the same trough, no matter what party they were in. And, the debt is headed for being half of our entire economy. Should have called the Article V amendment convention long ago, and backed Congress down a few notches. Too late now. Discounting the default of the government itself.

Interesting to see how the votes did not fall along party lines. Some have been noting for a long time that many on both sides share the same ideology and corruption.

Of the Yes vote: Fortunes stand to be cut. Perhaps the ones affected should recuse themselves from voting? Others may be being literally blackmailed or otherwise threatened. At appropriate times, skeletons get dragged out. I keep wondering about the timing of Spitzer's downfall. Some believe the government should rule our lives. Some believe the financial "cream" should rule our lives. Some believe corporations should rule our lives. A yes vote gives each of these camps the chance to prevail.

Of those who voted against: These Republicans actually want to see less power given to the government. These Democrats want to see government power directed to propping up the poor instead of the rich. Very different ideologies resulting in a No vote but a No vote gives each of these camps the chance to prevail.

As a start, the corrupted need to be uncovered and removed.