Monday's rejection by the House of Representatives of a proposed $700 billion financial rescue package sent stocks into a 777-point tail spin - the largest one-day drop ever for the index - and left hometown America jittery and uncertain.
Today, the Emergency Economic Stabilization Act of 2008 is in the tank thanks to a 205-228 vote.
As economic storm clouds continue to gather, Marietta is holding its collective breath, watching and waiting.
"I'm going to ride it out," said Ronnie Davis, 60, of Marietta. "I'd never been in the market until 10 years ago. My broker hasn't called and told me to sell, so I'm not. I really don't understand it all that much."
In an address to the nation early Monday prior to the House vote, President George W. Bush urged support of the bailout package, saying it was needed to "keep the crisis in our financial system from spreading throughout our economy."
Bush's plea fell on a majority of deaf ears.
Ohio Democratic Congressmen Charlie Wilson and Zack Space voted for the rescue package.
"We made critical improvements to this plan since it was first presented by the Bush administration," Wilson said in a statement issued Monday. "I am disappointed that so many members of the House put their own political futures ahead of America's future."
Space's office could not be reached for comment.
Fred Wood of Marietta called Monday's vote "a disaster."
"No question, you have got to do something and have to do it now," said Wood, 81.
When the government bailed out Chrysler (Motors) years ago, the deal ended up making money, he said.
"We've got to give it a shot," Wood said.
When it comes to investing, Wood's advice is "don't panic, don't bail out, wait it out."
Local financial experts pretty much agree.
Robert Voisinet, certified financial planner with Raymond James Financial in Marietta, said Monday that it's too late to panic.
"We've seen this before, and we'll see it again," he said. "I've got a lot of faith in the American people to work their way out of this, with or without, the help of Congress."
A bit of history
Voisinet said seeds of this economic storm were planted in 1992 when Congress made the decision to "loosen up" lending practices and guidelines, allowing more people to have home ownership.
"The result today is that mortgage debt is worthless in value and banks across the country are holding bad loans," he said. "Banks have greatly curtailed their lending and that's why the market is reeling."
The growing fear is that the U.S. is slipping into recession or even into a great depression, Voisinet said.
"Politicians failed to inform the public just how bad this situation was," he said. "There have been warnings for the past couple of years."
If nothing is done, Voisinet believes the economy will eventually correct itself, but it will take far more time to happen.
"It will be more painful and more people will be hurt," he said.
Looking ahead
This financial planner expected a close vote Monday, but thought the bank bailout would pass. He blames a speech by House Speaker Nancy Pelosi, D-Calif., just prior to the vote, for killing the deal that Congressional leaders and the administration had brokered.
What to do?
His clients would be told that if they are already fully invested they should check what stocks they own, make sure it's something they're comfortable with, but in general ride the current market climate.
"As for cash, slowly put it to work in the market over the next 12 months," Voisinet said. "When everybody else is selling, you want to be buying."
Suzanne Walker of Marietta said she didn't hear about the vote until she was on her way home from work and listening to National Public Radio.
"It's such a complex issue. The biggest thing that concerns me is there are so many people in foreclosure," Walker said.
In fact, she has a friend who is in danger.
"My friend lost her job and is three months behind on her mortgage payments," Walker said. "Even if it doesn't affect us right now, we all know someone who it does."
Walker said she is also disappointed that lawmakers could not come together on this issue without being political.
"I was hoping they could get by politics and do something for the American people," she said.
Take a breath
Marietta College economic professor Greg Delemeester suggests that everybody take a "timeout" and relax.
"For those on Main Street, hang on," he said. "We've been through Wall Street's ups and downs before, and the federal government has always come in and calmed the situation. This time is a bit different."
Having so much money at stake has paralyzed major lending institutions, Delemeester said.
"Banks lending to one another is at issue, not lending to individuals," he said. "I could probably get an auto loan if I went into a bank today."
Fallout from the economic crisis could even hit the college campus eventually, he said.
"Right now, college kids are not paying attention to this, but if it begins to affect student loans, that will be interesting," he said. "The loan market is drying up."
Another result for the average person will likely be a dramatic change in how we borrow money to buy a house in the future.
"Mortgages, I predict, are going back to the old ways of doing things and adjustable mortgages might be gone for good," Delemeester said.
Not that many years ago, home loans were not possible without 20 percent of the purchase price down and some certainty that the borrower could repay the loan.
Delemeester, who has been at Marietta College 22 years, said his sense is that the national crisis - at the onset - will not hit Main Street Marietta hard.
"What I see as most important now is that the general business climate in Ohio is not doing very well and until the state of Ohio gets its systems in order, that will impact us here," he said.
The Associated Press contributed.
