The folks at CBS News didn’t pull any punches saying Dow Falls Off A Cliff:
(CBS/AP) The Dow Jones industrials plunged 679 points on Thursday, driving the blue chip index below the 9,000 mark for the first time since 2003. A steep decline in General Motors stock helped to fuel the decline.
The blue chip index extended its selling to a seventh straight day as investors grapple with worries about the credit markets and the economy.
[…] “The story is getting to be like that movie Groundhog Day,” said Arthur Hogan, chief market analyst at Jefferies & Co. He pointed to the still-frozen credit markets, and Libor, the bank-to-bank lending rate that remains stubbornly high despite the Fed’s recent rate cut.
“Until that starts coming down, you’ll be hard-pressed to find anyone getting excited about stocks,” Hogan said. “Everything we’re seeing his historic. The problem is historic, the solutions are historic, and unfortunately, the sell-off is historic. It’s not the kind of history you want to be making.”
At close the Dow was at 8,579 which puts it within striking distance of the last record low of 8,235.81 which occurred just after 9/11. The recent rate cut by the Feds and the $700 billion in taxpayer money that’s been promised have done nothing to stop the bloodshed. Hold onto your butts. Things are likely to get worse before they get better.
But always remember that John McCain thinks the fundamentals of our economy are still strong!