Stocks Fall as Government Bailout Talks Stall

As reported by the Associated Press, a bailout plan for the U.S. economy and its financial markets will be passed, at least that is what President Bush told Americans this morning.

As quoted by AP, Bush said, "Anytime you have a plan this big that is moving this quickly that requires legislative approval, that creates challenges," and while "there is no disagreement that something substantial must be done. We are going to get a package passed. Republicans and Democrats will come together and pass a substantial rescue plan."

Bush's made these statements following an intense evening last Thursday night, wherein Republicans and Democrats flown in for the rescue plan meeting hit an impasse in their discussions. John McCain, Barack Obama, as well as others, met with President Bush to discuss the particulars of the government rescue plan. This plan includes a $700 billion appropriation of funds to troubled banks such as Washington Mutual and to mortgage companies like Fannie Mae and Freddie Mac.

By Friday morning, stocks, in light of the overnight roadblock, started tumbling again. As of this report, the Dow Jones Industrial Average is down by 49 points. The Nasdaq Composite Index is down by 32 points, and the Standard & Poor's 500 Index has lost 14 points.

World markets are also taking a hit in light of the uncertainty with the American stock market. Markets in Canada, France, Germany, Great Britain, Japan, and Hong Kong are all at negative percentages currently.

Senate Majority Leader Harry Reid (D-Nevada) is expected to hold a press conference later today. Experts predict that Reid will announce the continuation of financial negotiations until at least next week.

Now joining the troubled mortgage companies Fannie Mae and Freddie Mac, Washington Mutual has failed as of late yesterday. The company was seized by regulators on Thursday and then bought out by JPMorgan Chase for a total of $1.9 billion. On the news of Washington Mutual's collapse, the largest company failure in U.S. history and the 13^th one so far, shares of the company took a further drastic dive, going from $1.53/share to 16 cents per share.