Thursday, October 09, 2008

D-day for Dow today?

I've been watching that thing fall in slow motion the last few days, one source said Thursday could be a deathblow, as derivatives from Lehman brothers are being announced and if the news is not good it could cause serious damage.

Panicked investors have been fleeing from stocks. The S&P is down 37 percent from its peak of 1,565 a year ago, closing at 985 on Wednesday, and the Dow has tumbled 35 percent from 14,164 to 9,258.

Most experts don't see a recovery until there's greater stability in the housing market, banks are lending freely and employment improves.

Unlike other periods that saw precipitous drops, this one is rooted in foundering credit markets. That makes predictions more difficult than if the plunge were based on company profits or stocks alone.

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