Politics

Local Traders: Senate Vote 'Too Little, Too Late'

CHICAGO (CBS) ― Party leaders are counting heads in the House tonight - hoping to get enough support to pass the massive multibillion dollar bailout plan.

CBS 2's Dana Kozlov reports that the Senate voting "yes" to the $700 billion rescue plan was not good news to Wall Street after all. The market closed down 348 points - and traders here in Chicago say that's because the vote was too little, too late.

"The reason why we closed down today is because it's a loss of confidence," said Steve Gerbel, trader, Chicago Capital Management. "The time to pass this bill was on Monday, it's not now."

That's something you'll hear from traders all over the city's financial district. There's little faith the government and Treasury Secretary Henry Paulson will handle the bailout correctly.

DePaul University Finance Professor Rebel Cole isn't surprised.

"I just could not imagine being a congressman and voting for this without having some specifics," Prof. Cole said. "How are you going to spend it? What are you going to do? Paulson said, 'trust me.' How do I? I don't trust him."

The House will vote tomorrow on a plan that many economists say is necessary to keep the economy here from collapsing.

If the House votes yes, some traders believe - "All signs point to a rally in the market, but crazier things have been known to happen, so it's gonna do what it's gonna do," said Chris Bobowski, fixed income trader.

How may the markets react if the House votes "no" - pushing Congress and any bailout plan back to square one?

"Stuff your mattress," said Dennis Sotos, former trader. "It's gonna be bad."

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