Out of Control Policy Blog

Bush, Paulson ask for patience

Wall Street took another hit today, continuing the financial crisis woes and further discrediting the Bush-Paulson-Pelosi bailout plan. Both President Bush and Secretary Paulson released or made statements throughout the day asking for patience in the midst of the crisis–though ironically, they refused to listen to detractors who asked them to be patient in coming up with a solution just a few days ago. We rushed into this with a world of false assumptions and now must peal back our hopes.

(I do predict by year's end Wall Street will be back up, in fact when money hits bank books in a month or so we'll almost assuredly see an uptick. Of course by then we could have also fully examined the alternative options to a bailout).

The most disheartening news about today's Walls Street drop was the joke the stock market played on our hopes and fears. At 3:30 this afternoon the Dow was up 143 points, but with just 30 minutes to go in today's trading it began a 300-point nosedive to finish at 9,258–189 points and 2% down from Tuesday, but at least 51 points off its low for the day.

The Nasdaq and S&P 500 also played the roller coaster game, opening up large in the early hours, diving around lunch, picking up for afternoon tea, and then crash landing in the final minutes of the day. The Nasdaq finished down .83% after being up over 3.7% around 2:30 this afternoon. The S&P did have a high of 3.5% gains this afternoon, but also finished down 1.2% by the end of trading.

Today's trading takes the stock market down nearly 14.5% since the bailout was signed three and half trading days ago, 150% of the losses Wall Street took during the month of bailout debate.

Anthony Randazzo is Director of Economic Research


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