The costs of 700b failing
The dow tumbled 7%, and I saw a guess that would be about 1500b of market cap lost. Other indexes went way down as well (aex 8.75%, nasdaq 9%, S&P 9%, etc).
But hey, that’s not tax payer money, right? That’s just pension funds so nobody… oh wait.
September 30th, 2008 at 8:10
That view is for too simple. The bill was flawed in many areas, see: http://www.nytimes.com/2008/09/30/opinion/30tue1.html?_r=1&ref=opinion&oref=slogin. It is better they take time and get it correct and consider some other items like ability for legal redress, helping people stay in their homes… A good read on how Sweden handled it: http://www.guardian.co.uk/business/feedarticle/7820460
September 30th, 2008 at 18:32
The market cap drop was based on an estimate of the capitalization of NYSE, not including NASDAQ nor any foreign markets. Note that this is capitalization of the companies listed on one stock exchange–it’s not the total capitalization of companies in any of the indices like DJIA or S&P500.