The S&P 500 index is plunging 3% Monday following widespread news reports that the $700B government bailout for Wall Street has been agreed to and will be passed today by Congress. Proponents of the bailout had warned of a stock market crash if Congress failed to enact the socialist rescue plan. Credit spreads are wider and markets continue to be seized up, prompting the Fed to double the size of its liquidity injections to $300B. This is a sign from both equity and debt markets that there is little faith that the bailout will solve the financial crisis.
Source link: http://archive.mises.org/8639/a-vote-of-no-confidence-in-the-bailout/