Dow plunges 350 points on fears about global economy

[Kennah]

Source: LA Times

The Dow Jones industrial average plunged more than 350 points this morning as increasing pessimism about the economy overtook investors around the globe.

The Dow was trading at midday at 11,542, down 353 points, or 2.9%. Broader indexes were down more sharply, with the technology-heavy Nasdaq composite index plummeting 3.4%.

The Dow and the Standard & Poor's 500 index were both briefly down more than 10% from their 2011 highs, putting them in "correction" territory.

Most stock markets in Europe were down at least 2% as the trading day there drew to a close after prices declined steadily during the day. Investors there are worried about increasing debt problems in Italy and Spain.


Read more: http://latimesblogs.latimes.com/money_co/2011/08/dow-falls-300-on-fears-about-global-economy.html

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Could this mean even the markets know austerity ain't a good thing?

[C_U_L8R]

1. tossed into Boston Harbor

by a bunch of rightwinging chucklenuts

[Psephos]

2. The markets don't fear austerity.

They fear sovereign default.

The bond spreads tell all.

[tsuki]

3. FTSE MIB is suspended and Italian authorities have raided

Moody's and S&P offices to seize documents concerning the suspicious fluctuation of Italian share prices.

[abelenkpe]

13. Well someone should investigate ratings agencys

It's not like they didn't play a big part in the financial crash.

Wish it was the US going after them though.

[muriel_volestrangler]

15. Wow - link here:

http://www.forbes.com/feeds/ap/2011/08/04/general-financial-administration-eu-italy-financial-crisis_8601090.html

[tsuki]

19. Thanks for the link. All I saw was one line on zero hedge. nt

[Little Star]

4. They should have fear tptb are taking the whole globe down the toilet.

[KILL THE WISE ONE]

5. think 1937 - stimulus was cut back and the double dip hit.

austerity made Grease worse

[MineralMan]

11. Grease is good. It lubricates things like wheel bearings.

The only thing that makes grease words is sand or other contaminants.

[Kennah]

12. I think grease makes austerity better

They lube it up, bend us over, then stick it in.

[LiberalFighter]

6. Should there be an investigation of the Stock Exchange?

[cbdo2007]

16. um....why? Because the market fluctuates??? hahahahah hahahahaha

[xchrom]

17. good one! funny -- you don't think there's any criminal activity on wall street these days?

let's investigate & find out.

be interesting after what we know from enron to now.

[russspeakeasy]

7. maybe the teabaggers would agree to this; lets sell all the

old people (I am one) unemployed, and disabled ....@ .25/lb x ? = a shitload of money that we could use to support another war, or another tax cut for "john the boner".:wtf: :wtf:

[obxhead]

8. Phew....

Glad Democrats could cave on the debt ceiling attack to save the markets!

[okieinpain]

9. dumb president obama, he should have intervened in

Greece, and Japan. he's just spineless and a caver.

[liberation]

10. Sarcasm fail

[okieinpain]

18. lol. at least I tried. n/t.

[abelenkpe]

14. Greece, Ireland, UK

austerity has not been good for any of those places. It's not just the US.