Imagine this scenario, you own a profitable subway restaurant and that you are trying to sell. You find a seller and agree on a price of $250,000. He says I'm going to go on vacation on monday & tuesday and I'll be back on wednesday to buy the business. When he arrives he says, I'll pay you $225,000 because you know the mkt went down 5% each day, for a total of 10% so I took 10% off the price. You say give me a break! Really the only news was that they passed this bail out, there really wasn't any news warranting this move. Just because they passed this bailout doesn't mean that earnings are necessary going to be effected. You say the price of the business is really determined by the net present value of all future earnings, $250,000 or no deal. So what I'm thinking... is if there is really no bad news that says companies are going to earn 10% less, then why should companies prices be reduced 10%. The market went down because of panic, the price of the stocks should not reflect the panic but only the net present value of future earnings. So it's time to go long!! Opinions?