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New YORK (CNNMoney.com) -- Stocks slumped Wednesday morning, with the Dow industrials tumbling more than 300 points, as the government's emergency rescue of AIG exacerbated fears about the stability of financial markets. The selloff comes in the wake of Lehman Brothers' bankruptcy and Merrill Lynch's sale to Bank of America.
Investors also focused on a report that showed construction of new homes fell to the lowest level in 17 years.
The Dow Jones industrial average (INDU) lost 333 points, or 3% about 2 hours into the session. The Standard & Poor's 500 (SPX) index lost 3.4% and the Nasdaq composite (COMP) lost 3.5%.
Originally posted by mrmajestyk6309
...before a gigantic crash day happens...the powers to be would shut down Wall Street..suspend trading...wouldn't they ?....like an ice cube in the warm sun...we watch everyones investments melt away.......I just dropped the worlds smallest violin....
Originally posted by groingrinder
The government bails out the rich, fat cats for their mistakes. They should be let alone to taste the sting of their mistakes. Just like us the little guys.
Reserve Primary Fund Drops Below $1 a Share
Reserve Primary Fund, a money-market mutual fund whose assets have tumbled 65 percent in recent weeks, fell below $1 a share in net asset value, because of its losses on debt issued by Lehman Brothers Holdings.
In the industry, money funds whose net assets drop below $1 a share are said to have "broken the buck".
The Reserve Primary Fund had about $23 billion in assets on Tuesday, down from about $65 billion in assets as of Aug. 31, said fund spokesman Ming Lee Hatch.
Investor redemptions will be delayed as long as seven days, the fund's owner, New York-based Reserve Management Corp., said Tuesday in a statement.
The fund's chairman, Bruce Bent, is known as the "father" of money funds, after creating the first money market mutual fund in 1970 with a partner.
Originally posted by bismarcksea
Things are starting to happen very quickly.
Truth is, that they don't have the money to bail out AIG let alone anyone else.
We will soon see how low the bottom is!
WASHINGTON (AP) -- The Treasury Department will begin selling bonds for the Federal Reserve in an effort to help the central bank deal with unprecedented borrowing needs resulting from the current credit crisis.