The bailout bill was approved, so why are stocks still dropping?

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That's not an answer. Seriously. The money from the bailout bill was supposed to come from the federal reserves and then paid back by the tax payers.

It was such a big rush and hurry thing last week, so why are things still getting worse?

It will take months to realize the effects of the bailout. The 'bailout' was only approved and the bailout was a 'line of credit' to be used to help financial institutions, it wasn't created to directly give money immediately to specific institutions. It will take time to access things and figure out who gets what. It was passed quickly to give people a little confidence in the markets and a little confidence that they are working to restore things a little. The US economy is like a huge boulder...when it's rolling along smoothly it's tough to stop, but if it slows down or does stop, it's going to take a lot of people pushing and force to get it rolling again. It can't just go from 0-1000 mph with the stroke of a pen.

People are still panicking and it's people that are panicking an selling becuase thier stock haven't skyrocketed that are causing the markets to go even lower. Uninformed investors are saying "holy crap, the sky is falling, I better sell!" Informed investors are saying "holy crap, look how cheap those stocks are, I can get some deals! I better buy!" The uninformed sell their stocks, the informed know it's a panicked sell and make a low offer to buy and the uninformed say "Holy! It's worse than I thought! I better sell everything!" And the informed scoop up all the stocks cheap and will be laughing all the way to the bank in a few years. The Great Depression caused a lot of people to be broke, but did you know that more millionaires were created in the USA during the Great Depression than any other time period in history?

Unless, you absolutely need to withdraw your investments immediately, leave them in where they are (as long as it's a decent company) and buy more if you can (just be cautious of what your buying becuase some companies will fail during these rough times gauranteed). The only time you are losing money is if you withdraw it and the markets are down. If the money is just sitting in an account/stock, you haven't lost anything....it's still there, just might not be worth as much at the moment.

People are still afraid of a major crash and are pulling their personal money out of the market which makes it continue to fall. The money will also take a while to show a positive effect.

You really expected to see results THAT fast?

Stuff like this takes time

The stocks are still dropping for several reasons. One, although $700 billion seems like a lot of money, the losses incurred by bad lending practices are far greater, and it will take months for that bailout money to hit the companies that need it. Two, the problem was too much borrowing, so the government's solution is to make it easier to borrow money. Third, people are a little gunshy so they are selling when maybe they shouldn't be. And lastly, the market fluctuates for strange reasons sometimes.

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To answer your question a little less rudely the bailout will take months to years to really take any effect. A possibility of the markets keep falling is people want to save what money they have no, as of now nobody knows where this money will go so nobody wants to take a risk of the bailout not helping their company. The dow will continue to drop until we get real answers, until then a lot of people will continue to take money out and sell their stocks.

There is still too much volatility in the markets. I just checked and the Beta (a measure of risk) is at 6.1 -- that is higher than I've ever seen in my middle-aged life! You want about a 1.0, and 2.0 is getting people nervous. The total assets are in the trillions, so the bailout will only solve a few problems, and it all hasn't been injected into the markets yet.

The stock market is not going to stablize overnight. It is going to take time. If you really think about it, that bill is only really going to help the people who are already rich we regular "joes" are still going to be hurting.

The purpose of the "bailout" is NOT to bail out stocks; it's to unfreeze the credit markets.

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