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NEW YORK, Feb 19 (Reuters) - The Dow industrials closed at a more than six-year low on Thursday as investor fears that banks could be nationalized drove their stocks to a 17-year low and a rise in the number people receiving jobless benefits to a record high stoked worries about the deepening recession.
After several near misses this week, blue chips blew through the Nov. 20 bear market closing low in late trade, erasing a year-end rally built on hopes a new president would successfully tackle the deepening recession.
Shares of major banks tumbled on concerns about government plans to mop up bad assets from their books. The KBW banks index .BKX fell to its lowest level since 1992, led by a 14 percent slide in Bank of America (BAC.N) shares.
"There seems to be a whiff in the air that we're moving much closer to (bank) nationalization, which would effectively wipe out stockholders," said Paul Nolte, director of investments at Hinsdale Associates, in Hinsdale Illinois.
Originally posted by Rockpuck
Bottom finally gives way,
The bottom is now uncertain, and could push stocks even lower. [...]
We see the market at 600 to 660 on the Dow.
The expected rally, a supposed repeat of 1933, isn’t going to happen because today’s problems are 5-times worse than in that era, besides inflation will be raging.
Experts are looking vainly for an upside not for further downside, which will probably be the case. In addition we see world trade tightening further and 40% of earnings for the S&P500 comes from foreign trade...