As the crisis spreads to Europe, Wall Street takes another dive:
NEW YORKÂ (CNNMoney.com) — Stocks tumbled Monday, with the Dow Jones industrial average falling below 10,000 for the first time in nearly four years, as European governments’ rush to prop up failing financial firms underscored the global reach of the credit crunch.
Credit markets remained tight, with two key measures of bank jitters hitting an all-time high. Treasurys rallied, lowering the corresponding yields as investors sought safety in government debt. Gold rallied for the same reason. Oil dipped. The dollar was mixed versus other major currencies.
The Dow Jones industrial average (INDU) lost around 400 points or 4% in the early going, and fell below 10,000 for the first time since Oct. 29, 2004. The Standard & Poor’s 500 (SPX) index and the Nasdaq composite (COMP) both lost more than 5%.
Stocks slumped Friday, as the Wall Street’s worst week in seven years ended with President Bush signing the historic $700 billion bailout bill after weeks of contentious debate. The bill involves the Treasury buying bad debt directly from banks in order to get them to start lending to each other again.
But the bill won’t help loosen up credit markets in the near term, and with cash still scarce, investors remained on edge.
The edge of a precipice it appears.
October 6th, 2008 at 2:08 pm
Hey, imagine that. The “hurry up and pass it before we go over the brink” bailout hasn’t slowed our progress to exactly that end. Surprised, anyone? Anyone still believe it had anything to do with saving us all from a horrible fate?
October 6th, 2008 at 3:21 pm
Everyone knew the bailout wouldn’t work, even the crooked politicians who decided to send every household an $18,000 tax bill even though economists told them it would not work.
Today’s sell of is only a prelude to the real crash of over 20% that will come in the next week or so. Why? Just look at the history of the Great Crash of 29 and the crash of 87. Right now were only experience sell-offs before the real crash happens.
See my blog post here
http://blog.alexanderhiggins.com/2008/10/dow-crashes-below-10000-another-20-stock-market-crash-looms-ahead.html