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Dow Falls Below 10,000 on Credit Fears in Europe
Brendan McDermid/Reuters
By MICHAEL M. GRYNBAUM
Published: October 6, 2008
The selling on Wall Street began at the opening bell on Monday and only intensified as the morning went on. Shares moves sharply lower as the banking crisis tightened its grip on the global economy.
The Dow Jones industrial average fell below 10,000 for the first time since 2004 after losing more than 500 points in the first hour. The index has lost more than 1,100 points â€" or about 10 percent â€" in slightly more than a week.
The broader American stock market was down more than 6 percent, as measured by the Standard & Poor’s 500-stock index, its worst decline since last Monday’s 8.8 percent drop. At the same time, oil dropped below $90 a barrel.
The precipitous declines, which accelerated as the morning wore on, came a day after European governments were forced to scramble to save several major banks and lenders from collapse. The moves reinforced the global reach of the current crisis and alarmed depositors and regulators in the United States and abroad.
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The FTSE 100 index in London fell 5.6 percent; the Frankfurt DAX was down 5.2 percent and the CAC-40 in Paris lost 5.9 percent.
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The realignment in the currency markets that has lifted the dollar and yen against the euro continued, as investors worried about Europe’s banks and economic health and continued their flight to the apparent stability of Japan’s financial system.
The euro fell to $1.3609 in Paris morning trading, from $1.3772 in New York late Friday. The dollar fell to 103.42 yen from 105.32, and the euro declined to 140.74 yen from 145.07.
Full article: http://www.nytimes.com/2008/10/07/business/07markets.html?pagewanted=1&_r=1&adxnnl=1&partner=rssyahoo&emc=rss&adxnnlx=1223305234-upFjxWQwo4R07TV088Y3JA (http://www.nytimes.com/2008/10/07/business/07markets.html?pagewanted=1&_r=1&adxnnl=1&partner=rssyahoo&emc=rss&adxnnlx=1223305234-upFjxWQwo4R07TV088Y3JA)
Interesting to see where things go from here.
QuoteJim Cramer: Time to get out of the stock market
Financial guru warns that investments could lose 20 percent of their value
By Michael Inbar
TODAYShow.com contributor
updated 9:16 a.m. ET, Mon., Oct. 6, 2008
Bullish investors should turn into shrinking violets as the stock market continues its shocking downward spiral, CNBC’s “Mad Money†host Jim Cramer told Ann Curry on TODAY Monday.
In what Curry called a “dramatic statement,†Cramer emphatically urged any investor who has money they may need in the next five years tied to stocks to pull their dough out.
“I thought about this all weekend,†Cramer told Curry. “I do not want to say these things on TV." “Whatever money you may need for the next five years, please take it out of the stock market right now, this week. I do not believe that you should risk those assets in the stock market right now.â€
http://www.msnbc.msn.com/id/27045699/
If folks with such a short time frame have not done that already they are foolish.
Although a good bit of his advice has backfired. Abandoning the stock market could do more harm than any good.
Absolutely. There are great bargains out there for people with a long term time frame.