The U.S. government has already provided $900 billion US in relief as part of the financial crisis, including $85 billion US to buy out troubled insurer AIG and $200 billion US to take over mortgage lenders Fannie Mae and Freddie Mac. Critics of the bailout plan said it would have done too much for Wall Street firms, and too little for the average American people. Alternative plans discussed by lawmakers included having the government provide mortgage relief directly to homeowners, as well as loan guarantees for people at risk of losing their houses to stave off or even reverse a foreclosure.

Emerging market stocks dumped by Investor and Traders Monday after the U.S. House of Representatives rejected the proposed $700 billion rescue plan for the financial sector.

Stocks in India, Russia and Brazil -- three of the BRIC heavyweights -- were deeply in the red on Morning Session. The markets in mainland China are closed this week for holidays. In Brazil, the Bovespa index tumbled 9.4%. Russia's RTS stock index tumbled 7.1%. However Indian Market smartly recovred and closed in hefty green.

Taking unprecedented steps, the Fed and other major central banks on Monday poured hundreds of billions of dollars of added liquidity into money markets.

Equity strategists at Credit Suisse say $700 billion represents about 12% of mortgages not backed by Freddie Mac or Fannie Mae -- "probably an appropriate amount to ensure markets become more liquid." But they said it was too small, especially compared with the original Resolution Trust Corp. program that rescued savings-and-loans in the late 1980s.