World Markets Tank in Wake of Bailout Passage; Dow Dips Below 10,000

By Joshua Holland, AlterNet
Posted on October 6, 2008, Printed on May 27, 2012
http://www.alternet.org/story/101761/world_markets_tank_in_wake_of_bailout_passage%3B_dow_dips_below_10%2C000

Wow. Investors don't appear to be calmed ...

U.S. stocks plummeted in early trading today as economic turmoil rippled through Europe and investors questioned whether a bailout of the financial sector would be enough to prevent a global recession.

The Dow fell more 500 points mid morning but then retreated to more than 400 points lower by 11:18 a.m. It was the first time since October 2004 that the Dow fell below 10,000. The Nasdaq and Standard & Poor's 500-stock index were both down by 6 percent and by 11:18 a.m. had come back slightly, down 5 percent and 4.7 percent, respectively.

The day started with a negative momentum that has turned into a global panic, said Art Hogan, chief market analyst at Jefferies & Co. "It is just a realization that the global economy is going to be stagnant for the next 12 to 16 months" even with the rescue plan, Hogan said.

European officials are scrambling to bolster financial firms and Asian investors have grown worried that a global recession will undercut their export-dependent economies. Europe has been forced to prop up other banks in recent weeks. Markets in Asia and Europe were down from between 4 and 6 percent.

Joshua Holland is an editor and senior writer at AlterNet.

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