even after passing that bill ,every day there is bloodbath, carnage in the global stock markets.

Things have gotten even worse, & there is a lot of concern that this package is not going to be nearly enough. Additionally, it is taking them a while to implement the plan. Every single day, the financial system bleeds more.

The other reason is that investors r now focusing on the fundamental decline of the world economy. It looks like unemployment is going to rise a lot & that corporate profits r not going to grow at all. The focus has been on financial problems but increasingly the focus is on the broader problems of the whole economy.

As an aside, l would anticipate a small bounce in stock prices in the next few days. We've fallen a long way very fast.

Because the true source of the financial mess U.S. is in, is a slow-down of growing economy & stoppage of capital liquidity. Because of the over production in the housing market & bad loans that cannot be paid off, investors r all losing money & banks r crashing. The ''$700 billion bail out'' plan is merely a short-term displacement of ''blame'' from faulty bankrupt banking institutions onto U.S. Taxpayers, & by no means can guarantee a long-term solution to the fiscal & monetary problems we now face.

And since the U.S. economy is the largest in the world, all of the other countries r now suffering from the meltdown as well. This causes investors & consumers to have less confidence, driving losses in the stock market prices & rising inflation/deflation worldwide. On a positive note, though, history proves that an economic upswing follows every recession.

When they rejected the bailout plan, markets were so worried and uncertain about what was going to happen. That caused the plunge worth $3.4 billions already. When they approved, it was too late (although it was only few days difference). They tried to stop the extended loss but people already less trust that. It becomes a global crisis and this is a domino effect. In another world, everybody gets effected.

the masses can smell a bloodbath & frenzy follows, it takes a long time for that smell to dissipate & calm the masses. Only for so long do the little people allow the big boys to play with their money without reining them in & putting a halt to their antics. Numbers on pages r not the same as cash in the pocket although they might mean the same. Most who handle big numbers forget how to manage real dollars. But many of them might need to learn & quickly. The Dow is still falling as r other markets, it is one thing for the small investor to be scared quite another situation when the big guys run too -- be wary as this depression might hit harder than they predict after all most of them did not predict this otherwise they would have been more careful.

1) 700B is barely enough to buy ALL the CDOs (Colateral Debt Obligation) held by the banks.

2) Investors & Banks have their own accountants & analysts who r very smart & they will tell u that these CDOs the Fed r about to buy r possibly WORTH NOTHING or WORTH VERY LITTLE. Remember - these CDOs the fed is about to buy r the stinky, smelly JUNK RATINGS - Not triple A's, Triple B is Ratings.

3) 700B is to be used to ONLY buy these CDOs which r the most toxic assets these banks have..but how about other toxic assets which r ALSO deteriorating like CLOs, Alt-A's, Commercial Mortgages etc. ? Even if these banks manages to unload their CDOs, they r still losing money on other assets.

4) Since all of their assets deteriorating these banks r still insolvent (their debts r more than their assets) - because of their highly leveraged positions.

5) Alot of foreign investors r moving their money out of the US Stock market.

6) Before u could see a rally (at least a temporary one) most long positions must either hit a cut-loss or margin calls first.

l am gonna tell you something. This thread has more intelligent people than the top 7 in the Treasury Dept. Every answer (the first 7) was fantastic and dead on!

Too bad this group is not running the government because l think it could actually fix it!