Indiana financial experts urged Hoosiers not to panic after a $700 billion economic bailout plan was shot down by members of the U.S. House on Monday, including several members of the state's congressional delegation from both sides of the aisle.

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Analysis: Capitol WatchBlog: The Bailout That Blew Up
Local Experts Weigh In On Economic Turmoil Pence Explains His Vote

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Rep. Mike Pence, Rep. Steve Buyer and Rep. Dan Burton -- all Republicans -- voted against the proposal, along with Democrats Rep. Andre Carson, Rep. Baron Hill and Rep. Pete Visclosky.

Democratic congressmen Rep. Brad Ellsworth and Rep. Joe Donnelly voted in favor of the bailout, along with Republican Rep. Mark Souder.

Pence, who had been an outspoken Republican opponent of the plan, spoke on the House floor before Monday's vote and then flew back to Indiana after the proposal failed.

"The American people rejected the massive corporate bailout that the bush administration brought to Capitol Hill and today the people's house rejected that bailout as well," he told 6News' Rick Hightower. "I think it's imperative now that Congress set aside this failed proposal to come together in a bipartisan way and develop alternatives that will protect our free market and put the interest of taxpayers first."

Stocks plunged Monday after the emergency rescue package was defeated. The Dow Jones industrials sank nearly 780 points for the day, the largest one-day point drop ever.

Local financial experts told 6News' Tanya Spencer that the bill's demise may be an indicator of what's to come.

"The market is implying from this that, given no bailout proposal has been approved, that the probability of a recession has just increased significantly," said Indianapolis finance professor Kenneth Carow.

The investors Spencer talked to said while they weren't surprised by Monday's stock market plunge, the situation still hurts.

"I suspected the market was going to drop today and I shorted it and I made $2,000 off of it today," said Indianapolis investor Phil Cangelos. "That $2,000, however, does absolutely nothing to compensate for the $14,000 that my portfolio dropped."

Congressional leaders say Congress won't adjourn for the year as planned, but instead reconvene later this week to start work on another version of the bailout bill.