The U.S. House of Representatives rejected the federal government's plan to bail out banks Monday, resulting in a massive drop in the stock market and concern over the future of the country's economy.
The Dow Jones stock market index dropped 778 points Monday, the worst point drop in U.S. history but not the biggest drop percentage wise, according to CNN.
The bailout bill would have allowed the federal government to use up to 700 billion taxpayer dollars to buy bad mortgages from failing financial institutions.
Wisconsin members of the House were split over the bill, with U.S. Reps. Tammy Baldwin (D), Ron Kind (D), Gwen Moore (D), Dave Obey (D) and Paul Ryan (R) voting for it, and U.S. Reps. Steve Kagen (D), Tom Petri (R) and James Sensenbrenner (R) voting against it.
Baldwin said in a statement the legislation brought before the House was not perfect but the defeat of the bailout bill creates greater uncertainty in already troubled times.""
Kagen said in a statement the bill would not have effectively helped average citizens.
""I was elected to represent the best interests of families in Northeast Wisconsin - o - onot Wall Street,"" Kagen said.
UW-Madison economics professor Stephen Malpezzi said he is concerned the financial market is near a meltdown and those claiming to have a plan that would fix the crisis are ""fooling themselves.""
According to Malpezzi, this financial crisis may negatively affect students when they graduate and enter the job market, especially those with liberal arts majors, and it may also make student loans harder to obtain.
He said business students may lose some career opportunities, but will also be in high demand in the job market because they would be needed to help fix the economy.
Malpezzi said while the job outlook may be more tough for students leaving college, getting a job will not be impossible.
""Tougher doesn't mean zero,"" Malpezzi said. ""Tougher means you have to think harder about how to get yourself out in the job market and how to make sure employers know that you have things you can do for them.""
UW-Madison sophomore Wes Patoka said he was disappointed the $700 billion bailout plan did not pass and does not foresee a solution to the financial situation anytime soon.
""If there's no stop to this '¦ once we graduate there could be a decimated labor market making it extremely hard to find employment,"" Patoka said.
UW-Madison sophomore Cydni Chapman said she is mostly concerned about how the crisis will cause everyday commodities like gas and groceries to become more expensive.
