The Dow Jones Industrial Average (DJIA), which fell to a six-year low Thursday, continued to fall, finishing the Friday down 100 points to a 6 1/2 year low.
The DJIA actually managed to recover half its losses, recovering from a 200 point drop to finish down 100 at 7365.67.
Much of the worry centers around banks. Bank stocks led the way down, over fears the U.S. may have to nationalize them, as Sen.Christopher Dodd of Connecticut, chairman of the Senate Banking Committee, told Bloomberg Television:
“I don’t welcome that at all, but I could see how it’s possible it may happen. I’m concerned that we may end up having to do that, at least for a short time.”
At the same time, however, White House press secretary Robert Gibbs said:
“This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring that they are regulated sufficiently by this government. That’s been our belief for quite some time, and we continue to have that.”
If nothing else, that statement reduced the bank stock drop, as prior to that Citigroup and Bank of America had been down more than 35%. They finished down 22.3% and 3.6%, respectively.
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