Stocks Decline Amid Fears of Economic Slump

Stocks plummeted today as investors feared a continued collapse in the economy, amid congressional uncertainty and new data pointing to a slowdown:

The Dow drops 348.22 points to 10,482.85 on worries that the bailout plan won't pass in the House - or that it won't be enough to stave off recession.

As readers recall, I've written on the importance of state power in stabilizing markets and restoring confidence in economic institutions.

As the Wall Street Journal argued this morning, concerning the administration's bailout bill:

The Paulson plan isn't what we would have drawn up. It will not by itself inject capital into troubled banks, and it carries risks in how Treasury will price toxic assets when it buys them. But it is one more policy tool at a time when something needs to be done, and it is the only one currently up for a vote. Passing it won't by itself revive the banking system, but defeating it will guarantee far more damage to far more Americans.

Jason Pappas has a nice roundup of articles debating the issues.

I'll have more later.