TORONTO [PeterPaul.ca] — Stock markets in New York and Toronto plummeted Monday to some of their lowest-point drops in history after the U.S. House of Representatives rejected a $700B [USD] dollar economic bailout plan promoted by U.S. President George W. Bush.
Even before the rejected bailout was announced, Asian stock markets dropped steeply early Monday, on fears the $700 billion dollar bailout would be rejected, which it was later in the day. After the rejection of bill H.R. 3997, or the “Emergency Economic Stabilization Act of 2008”, it was all downhill.
Stocks in Latin America fell 13% as news of the failed bailout rippled across the globe by the afternoon. The Dow Jones Industrial Average nose dived by 777 points–its worst point drop in history.
Meanwhile, the Toronto Stock Exchange fell 840 points closing at 11,285.07, its worst drop in eight years. Oil prices were down more than $10 U.S., or 10.1%, to below $99 U.S. Monday.
New Democratic Party Leader Jack Layton called on all parties to hold a meeting on the “economic and financial” developments, and their impact on the Canadian Economy.
“I suggest the Prime Minister take advantage of this occasion to convene a meeting of all of the leaders, perhaps Wednesday afternoon,” Mr. Layton said on his website Monday.
Liberal Leader Stéphane Dion expressed his concerns regarding the days developments. “I am extremely concerned about the effect today’s events will have on our economy and the savings of ordinary Canadians,” via his campaign website.
Dion vowed on this website to continue the “sound fiscal management” of the Liberal Party, adding that prime ministers Paul Martin and Jean Chrétien maintained a $3 billion contingency fund during their tenures. Mr. Dion vowed to reinstate the practice.