Shock Waves

2:06 p.m. House rejects bailout, 4 p.m. Dow's record fall: 777.68

"Every retiree drawing out a monthly income should consider the painful step of reducing monthly draw," he said, while those with high debt levels should try to reduce those figures. "Pulling out of the market is not ill-advised for everyone. If someone has too high a risk profile or is living with too much leverage, those people should be panicked and hopefully propelled into some action."

The repercussions haven't yet become evident, he warned. Consumers could find it tougher to get a car loan or mortgage.

Meanwhile Congress is expected to take another shot at passing a bailout package, though a timetable remains unclear.

Birdsong said they have no choice but to pass the legislation and that the markets will eventually force them to do so.

"Congress has got to get the right solution," he said. "It's the only answer. The private sector is not going to solve the problem."

Baltimore Sun reporters Jay Hancock, Lorraine Mirabella and Hanah Cho, and the Associated Press contributed to this article.

WACHOVIA Citigroup buys banking operations for $2.18 billion. Pg 10