The Stock Market plummeted on Tuesday to a low not seen since 9/11, leaving “the Dow Jones industrials down more than 400 points on a worldwide tide of concern that the U.S. and Chinese economies are stumbling and that share prices have become overinflated.”
AP News reports:
It was the Dow’s worst point decline since Sept. 17, 2001, the first trading day after the terror attacks, when the blue chips fell 684.81, or 7.13 percent. In percentage terms, it was the biggest decline since March 24, 2003, when the index fell 3.6 percent as investors started getting rattled as U.S. casualties mounted in the early days after the invasion of Iraq.
The drop hit every sector across the market, and a total of $632 billion was lost in total in U.S. stocks on Tuesday, according to Standard & Poor’s Corp. Riskier issues such as small-cap and technology stocks suffered some of the biggest declines, but big industrial companies, those that are often hurt the most in an economic downturn, also were pummeled, with raw materials producers among the hardest hit.
And there’s more… Traders’ “dwindling confidence was knocked down” a few more pegs by “data showing that the economy may be decelerating more than anticipated.” A new Commerce Department report showed that orders for durable goods in January took a sharp slumped the largest “since October of last year.” And let’s not forget that former Federal Reserve Chairman Alan Greenspan just said the day before that “U.S. economy could fall into recession later this year.” Oops there’s still more gloom in the economy, because the housing market which has been on the slippery slope for a while now — it’s now reported to be “close to bottom.”
But wait, we’re blaming part of the stock market plunge on a “computer glitch.” How’s that for a quick excuse to attempt to mask the truth about the bad economic news? Despite the “computer glitch,” the “closing prices on Tuesday were accurate, the exchanges said.”
It looks bleak… very bleak. I’ve been saying here for sometime now that the economy sucks. Small business owners have been taking hits for a very long time in the Bush economy. For market watchers, Bonddad has the skinny on “What the Hell Happened Today.”
Note to Democratic Leadership in Congress and the ’08 Democratic candidates… We need to start talking more about the economy. There is nothing good about the Bush economy. Pass the Pepto… we need more Bush’s like a whole in the head.