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The Dow lost another 300 points and the S&P fell 2.9% to its lowest level since October 2006 on a series of major news and economic reports that all raise serious questions about the direction of the economy.
The industrial average has now fallen more than 1,000 points 2008.
Recession fear sends Wall St. reeling...again
NEW YORK (Reuters) -Stocks fell on Thursday, with the benchmark S&P 500 plummeting to a 15-month low, as news of a plunge in regional factory activity and a hefty loss at Merrill Lynch further clouded an increasingly dire view of the economy.
Federal Reserve Chairman Ben Bernanke echoed the bleak assessment of the economy in comments to lawmakers, reiterating that the Fed was ready to act aggressively and throwing his support behind other efforts to counter the risk of recession.
Fears that the credit crunch might be entering a new phase grew on Thursday as confidence fell in the strength of the insurers that guarantee payments on billions of dollars in bonds.
Shares in Ambac Financial and MBIA, the world’s biggest bond insurers, fell 65 per cent and 40 per cent, respectively, after Moody’s Investors’ Service raised the possibility that Ambac might lose the triple-A credit rating on which the insurers depend.
The pound has plunged and stocks are officially in a bear market, but there are still ways to profit
The FTSE 250 index of medium-sized firms – a better indicator for the state of the British economy than the main FTSE 100 index because it contains more domestic businesses – has now dropped 20% since its peak in early June. The Footsie is down 6% since then and 4% since the start of the year.
He said: “Last month saw close to the biggest single monthly drop of the pound since the exit from the exchange rate mechanism at the start of the 1990s, and suggests that the world is developing a different view of the UK. This seems justified as there are lots of reasons to be bearish on the pound.”
In a dramatic reversal to last year, sterling dropped to $1.9575 last week, its lowest level since March. It has slid 8% in the past two months from $2.11, its highest since 1981. The fall against the euro has been equally dramatic: from 70p to 75p.
Originally posted by Nyorai
How do we correct an economy like this where we are just printing debt?
Originally posted by Melbourne_Militia
Secondly, Im assuming if it gets that bad, that banks would be trying to salvage what little asset value they have right? (correct me please if Im worng here), so does that mean they will be selling everything they have and would they be willing to reposess homes that have been mortgaged top buyers as a last hope of holding onto some form of asset to try and weather this storm?
NYSE agrees to acquire rival American Stock Exchange to increase options business
NEW YORK - The New York Stock Exchange has agreed to acquire its smaller rival, American Stock Exchange, for US$260 million in stock.
The deal will later include the proceeds from the sale of Amex's headquarters a few blocks from the NYSE's Wall Street home.
WaMu Swings to $1.9B Loss
Washington Mutual (WM - Cramer's Take - Stockpickr - Rating) posted a net loss that missed analysts' estimates as the troubled consumer-centric company safeguards its business from future loan losses and damage amid the sour mortgage environment.
The bank's net loss of $1.87 billion, or $2.19 a share, was worse than the mean expectation of analysts polled by Thomson Financial by a whopping 83 cents a share. That compares to a profit of $1.05 billion, or $1.10 a share, a year earlier. Revenue of $3.41 billion fell short of analysts' mean expectation of a loss of $1.36 a share on $3.51 billion of revenue.