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Congress Rejected "Polson's Plan", Market Fell Even More, Than after September, 11

Congress Rejected "Polson's Plan", Market Fell Even More, Than after September, 11
30.09.2008

The lower chamber of Congress of the USA rejected a bill about allocation of 700 billion dollars to support financial market of the country. 205 congressmen voted for acceptance of the document, 228 - against, Reuters transfers. Index Dow Jones being the basic parameter of business activity in the USA for the first time in the history fell on the results of one session up to 777,68 points (-6,98%) and made 10365,45 pooints. On results of tenders on September, 29 of the current year other American indexes fell: NASDAQ went down on 199,61 points (-9,14%), S*P 500 - on 106,62 points (-8,79%). Oil fell in price almost on 11 dollars.

The collapse of the American share market was caused by news that House of Representatives of Congress of the USA rejected the bill of support of financial market of the country. Till now the most significant falling of Dow Jones for session occurred during the first tenders after acts of terrorism on September, 11, 2001: then the main index of share activity in the USA decreased on 684,81 points.

The decision of the congress was unexpected as on the eve senator - republican Dzhud Gregg declared that congressmen coordinated the bill.

According to the plan, originally and immediately 250 billion dollars should be allocated from the budget to Treasury Department, 100 billion dollars more - in the event if the president of the country George Bush will consider this step necessary and 350 billion dollars - further, in case of special approval on the part of Congress.

However even in such softened form the plan of stabilization of a financial system didn't pass. Consequences of this decision of Congress are unpredictable.

While stock exchanges in Asian - Pacific region opened with sharp falling of the basic indexes. So, Japanese index Nikkei right at the beginning of tenders in Tokyo fell on 4,2% up to a level of 11277,99 points - the lowest this year, Associated Press transfers. Simultaneously for the first half an hour of tenders the Australian index S&P/ASX-200 fell on 5,2%. The New Zealand market fell on 4,7%.

The share tenders in Europe on September, 29 were closed by large reduction of the basic indexes on a background of corporate news and debate proceeding in the USA in relation to acceptance of the bill of support of financial market of the country. The basic indexes were lowered up to a level of January, 2005.

On results of tenders on September, 29, 2008 British index FTSE 100 decreased on 269,70 points (-5,30%) - up to 4818,47 points, German DAX - on 256,42 points (-4,23%) - up to 5807,08 points, Amsterdam AEX fell on 31,03 points (-8,75%) and was closed on a mark in 323,55 points, French CAC 40 - on 209,90 points (-5,5%) having finished tenders the tenders on a mark 4163,38 points, Swiss SMI decreased on 315,36 points (-6,63%) and made 6500,13 points.

All-European index FTSEEurofirst on results of tenders lowered on 57,08 points (-5,23%) and made 1047,04 points. Today's day does not foretell anything good.

 

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