September 29, 2008 Newsnight: Collapse of the bailout (part 2) Play video

(NECN) - The failure of the bailout package in Congress literally dropped jaws on Wall Street and triggered a historic selloff - including a terrifying decline of nearly 500 points in mere minutes as the vote took place, the closest thing to panic the stock market has seen in years.

The Dow Jones industrial average lost 777 points Monday, its biggest single-day fall ever, easily beating the 684 points it lost on the first day of trading after the Sept. 11, 2001, terrorist attacks.

The unpredictable events on Wall Street and in Congress drew the attention of the presidential candidates. First Barack Obama, and then John McCain.

The rejection of the bailout was "bipartisan". From Massachusetts, Democrats Lynch, Tierney and Delahunt voted against. And in New Hampshire, Democrats Paul Hodes and Carol Shea Porter voted against.

Joining Jim on this segment of newsnight is Sheila Capone Wulsin, chair of the Mass. Women's political caucus, and David Shagoury, who served in the Office of Economic Development during the Celluccci administration.

Material from the Associated Press is included in this report.