Tea party lawmakers say the S&P's downgrade of the US credit rating and the markets' convulsive reaction on Monday is merely confirmation that they had been right all along.
The Dow closed down 634 points, the S&P 500 lost 79 points, and the Nasdaq ended 174 points lower. For every stock that rose at the New York Stock Exchange, more than 69 fell.
Bank of America and other large banks say that investors' lawsuits could affect their bottom line.
Fannie Mae announced a $11.5 billion quarterly loss Monday. The mortgage giant's continued poor performance has added urgency to the question of how – or whether – it should be saved.
Some economists have reservations about recent moves to rescue the economy.
The money will go to unfreeze mortgage and consumer lending.