Tuesday, October 07, 2008

Dow Dives... Lowest Since 2004

So Much For The $700 Billion Dollar Bailout
Credit Crisis Spreads...

The Dow fell more than 800 points Monday, dropping below the 10,000 mark for the first time since 2004 as global markets suffered their worst day in years while the credit crisis spreads. Shares recovered later in the day to end down about 350, but the damage still resulted in a 3.5 percent drop in the Dow and a whopping 4.3 percent fall in the Nasdaq. The systemic crisis in the U.S. banking sector is now a worldwide phenomenon.

And that may be the worst news of all; namely that today's drop comes after the passage of the $700 billion bailout package. Among more optimistic pundits, the deal was supposed to be the thing that returned a spark of confidence to markets. Now, we're very likely past the point where all but the most hardened traders are willing to take flying leaps on beaten-down areas like banks (or much else, for that matter). It's also a signal that normalcy on Wall Street is still largely an illusion.
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