Member of Congress vote with a little card that's like a credit card. Investors vote with their money and their judgment was swift following Monday's failure by the House to pass the $700 billion bailout bill negotiated over the weekend. A historic drop in the Dow followed, sending the average down to another test of support at its downtrending channel.
Congress will revisit the bill later this week, keeping the markets nervous. In the meantime, volatility should rule the day as traders watch for more signs the contagion is spreading to Europe. That certainly seems to be the case, as governments across the pond rush to shore up their own teetering investment companies and banks. Ireland removed limits on bank deposit guarantees, England all but nationalized one of its mortgage lenders, and officials on the continent injected massive amounts of capital to keep their lending system from seizing up.
To read Bryce Knorr's complete financial review, click HERE.
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