Wall Street Tumbles Amid Global Sell-off

[ThePhoenix]

http://news.yahoo.com/s/ap/20081006/ap_on_bi_st_ma_re/wall_street

Financial markets took a bleak view of the future Monday, seeing contagion in a credit crisis that threatens to cascade through economies globally despite government efforts to provide relief. The Dow Jones industrials skidded around 600 points and fell below 10,000 for the first time in four years, while the credit markets remained under strain.

Investors around the world have come to the sobering realization that the Bush administration's $700 billion rescue plan won't work quickly to unfreeze the credit markets. Global banks, hobbled by wrong-way bets on mortgage securities, remain starved for cash as credit has dried up.

That has sent stocks spiraling downward in the U.S., Europe and Asia, and driven investors to sink money into the relative safety of U.S. government debt. Fears about a global recession also caused oil to drop below $90 a barrel.

[David__77]

1. Because people realize the "rescue" won't cut it.

It cannot change the fundamental economics of the situation. And there is a dangerous side to it, for sure. Maybe high inflation is the only viable solution to the crisis.

[phantom power]

2. High inflation solves nothing. All that will accomplish is to collapse our currency.

[katty]

3. yup