2:50PM EST: (UPDATE BELOW) 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. As of this posting the Dow Jones industrials skidded around 800 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.
UPDATE 4:03PM EST: Dow crosses back above 10000, before ending at 9962, down about 360 points. Earlier, the Dow traded down about 800 points.
(CBS2 HD / Wall Street Journal)