Market Slump Reflects Fears of Double-Dip Recession

Friday, August 05, 2011

Traders work on the floor of the New York Stock Exchange. (Ramin Talaie/Getty)

U.S. markets are opening this morning after their worst day in almost three years. The Dow Jones index of thirty blue-chip stocks closed more than 500 points down, or 4.3 percent, the biggest one-day fall since late 2008. Indexes including the S&P 500 also plunged yesterday. The news reflects fears of a slowdown in global growth, concerns about Europe’s debt crisis, and the prospect of a double dip recession.

Louise Story, Wall Street and finance reporter for our partner, The New York Times, explains why the market plunge occurred.


Louise Story

Produced by:

Duncan Wilson

Comments [2]

Angel from Miami, FL

Government work programs notwithstanding, the president (any president) can do very little to improve our economy. He's just a crossing guard making sure all the conditions are right to help you cross the street. But he can't force you to cross the street. If the investors and banks want to stay put, we can either wait behind them or go around them with new enterprises independent of their involvement.

Aug. 05 2011 09:19 AM
ruthasaffold from us

It's getting harder to spin the competency of BO. The public sure got duped with his election. Wonder if the media and their cabal, JournoList, now feel they did a service to the country.

Aug. 05 2011 06:15 AM

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