It was a bad day in the markets, all around.
The Dow dropped 350 points and credit markets continued to tighten today. Don’t people know the Senate passed the bailout (sorry, “rescue”) bill. The same one whose failure caused Monday’s market drop. Well, at least unemployment’s up. Oh, wait, that’s a bad thing…
AP: Pessimism about a protracted economic downturn washed over the financial markets Thursday, sending stocks plunging and further tightening the credit markets. Reports on declining factory orders and a seven-year high in jobless claims stoked fears that the government’s financial rescue plan won’t ward off a recession, and the Dow Jones industrials skidded nearly 350 points.
Investors appeared to be settling in for a prolonged economic winter. The main concern is that the $700 billion bailout plan won’t be enough to stimulate growth, and economic reports delivered Thursday show that the U.S. continues to struggle.The government said the number of people seeking unemployment benefits rose last week and that demand at the nation’s factories has fallen by the largest amount in nearly two years. The market is interpreting the Commerce Department report on factories as a sign that tight credit conditions are hitting manufacturers.
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