Reality TV: Financial Catastrofuck

The US Congress and Dow Jones don't usually make exciting TV, but last night was different.  Watching BBC and CNN at 1:30 to 4:00 in the morning was more nail-biting and nerve-wracking than that overhyped, inconsequential Ateneo-La Salle game.  By the time it was over, the Dow Jones lost 778 points, its biggest one-day loss ever.  The World Trade Center being demolished by two planes in the middle of Manhattan did not have that much impact on the Dow.

The day started ominously enough with multiple bank failures and bailouts-- in the US, UK, Belgium, Germany, even Iceland-- and that was on top of all the bank failures and bailouts of the past two weeks. Then congressmen started debating whether or not they will approve the $700 billion Emergency Economic Stabilisation Act, which is essentially a transfusion of captial into markets that have stopped running.  It was a very unpopular bill as Main Street complained that their tax dollars are being used to help Wall Street fatcats while ordinary taxpayers are left with foreclosures and bankruptcies.  But after three days of intense negotiations and with the solid backing of the White House and the leaders of the Democratic and Republican parties, the bill's passage was almost a foregone conclusion.

Then the voting started.  The Yeas started with a margin of 30 votes, all the way to 110 Yeas and 80 Nays.  Then the margin was whittled down to 25.  20.  15.  10.  Then it was dead even with only a few minutes left for voting.  Then the Nays were leading and the lead stood.  Voting ended with 228 Nays and 205 Yeas.  The bill failed.

As voting took place CNN was showing a live feed from Dow Jones showing real-time reaction to the vote.  When voting started the Dow was down around 200 points.  Then it was down 300.  400.  500. 600.  Hala Gorani, the CNN anchor who used to be a finance news reporter, could not believe the numbers she was seeing.  By the time the 15-minute voting window ran out the Dow lost 700 points.  The index was erratic for the next few hours while the House Democrats and Republicans were blaming each other, but by the end of the trading day the Dow suffered its worst single-day loss ever, worse than 9/11, the DotCom Bust, and the Asian Crisis.  And after a few hours, as I write this, the Asian markets are crashing as well; European markets haven't opened yet.

As Jon Stewart would say, this is a financial catastrofuck.  On live TV.