I don’t think the Dow will fall that far for two reasons:

– I think the polticians for this bill were over-hyping the downside. Not all mortgages in the country are bad, in fact less than 5% are. There will be further correction but I’d be surprised if the Dow went much below 10,000 before rebounding.

– Second, this is just the initial form of the bill. They have to do something to fix this mess, but this “solution” was anything but.

Things may get worse before they turn around, but at least now we aren’t wasting $700 Billion on delaying the correction.