Over $7 trillion dollars have been made available by the US government to rescue the financial sector and the economy. That’s about $23,000 for every American, and more than half of US GDP. However, allocations for the beleaguered auto industry remain pitiful and Detroit’s Big Three desire a larger piece of the pie to maintain their status quo.

It is one way traffic: Dow Jones plunged below 8000, a first since 2003. There was a bear rally on Tuesday but it is a folly to be tempted by profits in all these technical rebounds. For those who are drawn in and end up selling in a panic, you risk doubling your losses.

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Merrill Lynch, as a revered investment bank, don’t know what the f*ck they are doing with mortgages, yet they go around advising clients and selling mortgage based securities. What chance do retail investors have when their trusted adviser is flying blind in its pursuit of profits?

A whooping $2.4 trillion in market value was wiped off on Wall Street and many investors were rattled by this self-feeding frenzy. Billions of dollars were withdrawn from equities as investors scurried into havens like bonds and Treasury bills. Global markets fell like nine-pins too, with the Japanese Nikkei and London FTSE crashing about 10%.

Since Monday, the “Paulson Plan” has been thrust into intense debates at Senate hearings as Democrats and Republicans unite in their dislike of this mind-numbing $700 billion bailout of the nation’s financial system. I find such actions amusing, if not hypocritical.