The Dow Jones Industrial Average (DJIA) dropped over 400 points to 7997, finishing below 8,000. Meanwhile the NASDAQ was down nearly 100 points to 1,386 while the S&P 500 dropped 50 points to 806.
Wall Street Investors are already feeling the pinch, but as the Big 3 automakers continue the plead their case for a bailout, they are worried that a collapse of any of the Big 3 would cause untold economic damage to the stock market and elsewhere.
MSNBC reported:
"There's a general malaise among investors right now," said James Cox, managing partner of Harris Financial Group. "Everybody is in wait-and-see mode of what is going to happen with these big three automakers."
At the same time, investors were discouraged by the Federal Reserve's sharply lowered projection for economic activity this year and next. In the minutes from its last rate-setting meeting in October released Wednesday, the Fed signaled additional interest rate reductions may be needed to help combat the worst financial crisis to jolt the country in more than a half-century.
The New York Times said:
“It’s painful,” said Howard Silverblatt, senior index analyst at Standard & Poor’s. “A lot of people have pulled a lot of cash out. They’re sitting on the side. It’s all I hear all day: ‘Where can I hide?’ ”
It hasn't reached the point where investors are hiding their money under their mattresses (and they would be foolish to do so --- at least use a SOLID bank), but who knows?
