U.S. Stocks Tumble as Lehman Brothers Rattles Banking System

[marmar]

from Bloomberg:



U.S. Stocks Tumble as Lehman Brothers Rattles Banking System

By Elizabeth Stanton

Sept. 9 (Bloomberg) -- U.S. stocks tumbled as a 45 percent drop in Lehman Brothers Holdings Inc. shook the banking industry, and oil's plunge to a five-month low pushed energy companies down by the most in six years.

The Standard & Poor's 500 Index slumped 3.4 percent, its biggest drop since February 2007, a day after the government's bailout of Fannie Mae and Freddie Mac sparked the biggest rally in a month. Lehman led financial shares to their steepest drop since July after talks to sell a stake to Korea Development Bank broke down. Massey Energy Co., Valero Energy Corp. and Freeport- McMoRan Copper & Gold Inc. fell at least 9 percent.

The S&P 500 decreased 43.28 points to 1,224.51. The Dow Jones Industrial Average lost 280.01 to 11,230.73. The Nasdaq Composite Index sank 59.95, or 2.6 percent, to 2,209.81. About 10 stocks dropped for each that rose on the New York Stock Exchange.

The declines pared the S&P 500's advance from a 2 1/2-year low on July 15 to 0.8 percent. Financial stocks led the rebound, rising 31 percent through yesterday on speculation they're recovering from the collapse of the subprime mortgage market. Banks, brokerages and insurance companies in the S&P 500 are still down 25 percent as a group for the year after losing 21 percent in 2007, the steepest decline in four decades. .....(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a1P7Ag0fTWts&refer=home

[no_hypocrisy]

1. Do we have to bail THEM out TOO????

[Clear Blue Sky]

3. That was my comment too. Another government bail out?

[nc4bo]

2. sigh. oh boy. nt

[JDPriestly]

4. The problems are fundamental, and the Republicans don't want the American people to know it.

The Republicans (with the complicity of Democrats in Congress) are hiding the harsh facts from the American people. We have lived beyond our means -- as a nation.

We cannot afford the Iraq war and still consume Chinese, etc. junk the way we do. The Bush/McCain economy is a fool's paradise with a tidal wave aiming for us just over the horizon, just out of the view of the average good-natured but naive American. McCain/Bush/Palin/Cheney are just praying to be able to delay the crash until after November. But it's getting tougher and tougher in spite of the slightly lower oil prices.

This hurts. No matter where you are in the economy, this hurts.

[originalpckelly]

5. It's oil that's doing it. Chinacrap is only minor part of the trade deficit.