Everyone's Money Is On Fire: Stocks Plummet Around The World

A trader this morning (AP)

The Dow Jones Industrial average fell over 300 points today, over 3%, which wiped out its entire 2011-to-date gains. Why? The Standard & Poor 500 also fell over 3% today, "a 10 percent drop from its April 29 peak and weakest level in nine months." The NY Times says, "The stock market fell sharply Thursday on intensifying investor fears about a slowdown in global economic growth and worries about Europe’s ongoing debt crisis, which is centered now on Italy and Spain."

Some more detail from Bloomberg News: "Concern the global economy may relapse into a recession has driven investors out of stocks and into the relative safety of Treasuries, the Swiss franc and yen and is spurring speculation the Federal Reserve will start another stimulus program. Japan’s moves to sell the yen, which this week neared a post-World War II record, and expand an asset-purchase fund follows efforts by the Swiss central bank to curb the franc’s gains. The European Central Bank resumed bond purchases and offered banks more cash to stem the spread of the debt crisis."

Let the pants-crapping commence.

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By Jen Chung in News on August 4, 2011 12:45 PM

Comments [rss]

AndySydor

I think this is response to the budget deal announced this week. (Remember, its supporters claimed the Market would "approve" of it and improve.) People on Wall Street don't really care about the politics so much (I used to work there, a long time ago.) It's about making the money. And it is so financially irresponsible to cut government in the face of a crisis like this, Wall Street sees we're doomed. Not to mention adding thousands of government lay-offs onto the unemployment rolls. The Tea Party has wrecked the country, with Obama's help.

But, hey, that's what they wanted, right? Turn the economy into a desert, and then watch the desert bloom, right?

LICnative

Four more years! Four more years!

I'm investing in large cardboard boxes. We'll all be living in one come re election.

diablofreak

hope and change, suckas.

Ted Hudson

Chicken Little economy.
Another day like this and I'm buying in, suckers!

"Tim Osman"

99.9% of us are royally screwed.

FU Boy

I was expecting the second drop in September / October. Maybe this is just the warning dip...

MattyGC

Economists did warn of a "dead cat bounce" about a year and half ago when the dow was recovering (nice term, huh?) However, with consumer spending slowly creeping back up and consumer debt down, I would say that we may just be able to beat the larger, Fiscal problems of the U.S Government and its effect on the economy.

Back to you, Maria Bartiromo

Colonel_Ingus

Yeah, except consumer spending is teh suck right now.

jibbly

Not for the fabulously wealthy!

http://www.nytimes.com/2011/08...

AGWAGW

When the revolution comes, I will blame articles like this one. "Oh, you lost your house? Don't worry, it's only $190,000 you'll make it back soon. In the meantime, please wrap my $1,000 dog shoes in 24k gold foil. I don't want your poor germs on them."