and the nasdaq ended the day at 2082. >> the market reaction to the lack of a pailout deal has been mixed. the japan index fell more than 4%. hong kong rose.76% n london, rose almost 2%. world read leaders watching to see whether congres pass that's rescue plan. >> the vote of america is very disappointing. >> we cannot allow what happened in america to happen here. >> it's necessary for global financial markets. >> so far, markets in asia and europe have been in a blood bath but there are concerns over what prolonged uncertainty will do. >> just when you thought the housing market couldn't get worse banks in europe delivered a body blow. millions of u.s. mortgages and subprime home loans linked to a rate you might not have heard of before. the london inner bank offer rate. that rate just rose dramatically today. the libor index established in 1984 in london. it's the interest rate that banks charge each other for loans. the most common is the overnight rate. >> that is a a lot of people wanted money taken out via here before the weekend on i friday. that bank instead of having to sell would it go to another bank and say i need $100 million today. just lend it to me overnight. >> imagine the shock this morning had the libor rate went up from 2.65% to 6.88% in response to the sales congressional bailout and the stock market crash. and so what this means is that the short term lending market is practically frozen. and the message banks all over the world are sending other institutions is, we don't trust you. >> once bank will not lend to another bank right now. because there is no certainty about the following day when you wake up... wil that bank you loaned to yesterday still be a bank? >> what most americans don't realize is many u.s. adjustable rate mortgages are linked to the libor index. so are most of the subprime home loan autos for those people just coming out of a fixed rate period, if we see big jumps in libor it's going to take a bite out of whatever mb they have. > mike duffy is a dean at the school of business and says the good news is that people's mortgage rates are not reset every day. >> so today's enormous spike is not going to change anyone's mortgage today. but if it's staying this high, in a few months, many people would see their mortgage payments going up. >> that would concern me that. is another indicator our economy is going to have tough problems as a result that have. >> analysts say the libor will begin correcting itself after the u.s. helps stabilize the banking industry. >> new york city mayor wants to change a law he once supported to he can run for a third testimony. the associated press reports the billionaire will reveal his plan to run for a third term, believing american's biggest city needs a proven financial manager. new york city voters voted to limit the mayor to two terms back in 1993. > belmont police say they've had enough with people they came call 911 too frequently. now, they're pro posing charges abusers a fee for making too many calls. >> reporter: those who make excessive service calls to blees plees in belmont maying charged a fi.