Ouch! Dow tumbles 777 points today

posted by   Ian Wyatt   |    September 29, 2008

Posted in   Financial Markets   |   Comments

I don't have much to say other than that today was a terrible day for investors. Dow Jones Industrial Average was down 777 points, a record one day point loss for the benchmark index. The U.S. House of Representatives voted down a $700 billion bailout package being pushed by the Bush administration.

Not much else to say other than this is an incredibly challenging environment. Action is clearly required, and the disappointment of investors was evident in today's market action. Like it or not, the U.S. economy faces a liquidity crisis which is unlikely to be resolved in a timely manner without government intervention. The free marketer in me says "leave the market alone." However, the realist in me says "we need action, and we need it now."

Have we hit rock bottom? Or is more bad news on the way? For a couple months now, investors including me have thought we've hit rock bottom time and time again. Is this actual the end to the decline? Perhaps. But I have trouble believing we are going to have a fast turnaround to the prosperous times. It feels to me like we may hover in this unpleasent bottom for a while. 

We shall see what happens in the market tomorrow.  While this blog wasn't intended to be a commentary on the market, I think the recent events in the capital markets and stock market highlight some serious challenges to our economy which are having a profound negative impact on small businesses and entrepreneurs throughout the country.

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