Whoops ....

 That didn't go as expected now did it?

U.S. stocks and oil plunged and Treasury bonds rallied the most in two weeks after U.S. lawmakers rejected the Bush administration's $700 billion financial rescue.

The Standard & Poor's 500 Index fell as much as 7.2 percent, the most since Oct. 26, 1987, as 490 companies declined. The MSCI World Index of 23 developed markets sank 5.9 percent, the steepest decline in the measure's 38-year history. Trading on Brazil's Bovespa was halted after the main stock index plummeted 10 percent. The euro and the pound sank and bonds rose as governments raced to prop up banks infected by growing U.S. mortgage losses. Crude futures tumbled more than $11 a barrel.

Cold winds are going to blow over the market open tomorrow (today, when you get this) in Europe; especially now since it is is so painfully clear that Europe will be hit the hardest in terms of the real economy. I wonder whether regulators will ban short selling all together on the back of this? That would boost my ego as financial pundit since I (think) am on record somewhere for noting that a ban of short selling or perhaps especially the leveraged vintage could be the result from all this; we will just wait and see I guess. As for the legislation itself, it may of course still be amended for a pass or the White House may put its foot down, but then again, it may not. Filibuster anyone?