Stocks Plunge As Dollar Hits New Low

Dow Jones Falls More Than 360 Points; Oil Trades Above $98 For First Time Before Retreating

(CBS/AP)  Wall Street suffered its second big drop in a week Wednesday, with investors worried about spreading fallout from the credit crisis at banks and about a dollar that just keeps getting weaker. The Dow Jones industrial average fell more than 360 points, just about matching its plunge of last Thursday.

The Dow's plunge was its third 300-point drop in just four weeks, reports CBS News correspondent Anthony Mason. And the Dow has now fallen 800 points, or 6 percent, from its all-time high less than a month ago.

Stocks were rattled right out of the gate after General Motors posted a stunning $39 billion loss, most of it due to tax accounting charges.

Then the dollar tumbled to new lows, adds Mason, after a Chinese official called for his country to move some of its foreign currency reserves out of the weakening greenback and into stronger currencies like the euro.

Meanwhile, oil prices stalled in their climb toward $100 a barrel after a government report said oil inventories fell less than expected last week while refinery utilization remained flat.

Oil investors largely viewed the report as neutral in that it confirmed a view that oil supplies are falling, but offered no real surprises. A larger than expected drop would most certainly have propelled oil past $100 a barrel for the first time.

Crude inventories did fall at the closely-watched New York Mercantile Exchange delivery terminal in Cushing, Okla., but that did not appear to be enough to propel prices sharply higher.

"We got kind of a mixed reaction," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.

At the pump, meanwhile, the national average price of a gallon of gas rose 1.9 cents overnight to $3.043, according to AAA and the Oil Price Information Service. Prices are up nearly 29 cents since mid-October and are 85 cents higher than a year ago.

"I don't think it's a question of whether we hit $100. It's a question of how much time we might spend there," Tom Kloza of the Oil Price Information Service told CBS' The Early Show.

The 13-nation euro hit a fresh record against the dollar, rising to $1.4729 - before falling back. The dollar fell not only against the euro but in Asia following a report that a senior Chinese political figure said China should diversify its $1.43 trillion foreign exchange reserves into the euro and other strong currencies.

The fear with a huge drop like Wednesday's is whether it is part not just of a correction, which is a 10 percent pullback in stock prices, but that it could be the beginning of a bear market. With the huge volatility that has swept Wall Street since the summer, and triple-digit moves in the Dow becoming commonplace, no one can be sure.

Still, the concern on the Street is that the extent of the fallout from the credit market crisis that has led to billions of dollars in losses for major banks and investment firms is not yet known. With Citigroup Inc. announcing Sunday it needed to take an additional $8 billion to $11 billion in writedowns, investors are very uneasy not just about stocks, but the economy as a whole.

"The financials are the bodyguards of the market and when the bodyguards are taking shots then the market can't do well," said David Darst, chief investment strategist for Morgan Stanley's global wealth management group.

"A lot of the bad stuff is known, what the markets are worrying about is the unknown," Darst said.

According to preliminary calculations, the Dow fell 360.92, or 2.64 percent, to 13,300.02. The Dow, which had gained 117 points on Tuesday, had fallen 362.14 last Thursday, reflecting the extreme fractiousness on Wall Street these days.

Broader stock indicators also pulled back Wednesday. The Standard & Poor's 500 index fell 44.65, or 2.94 percent, to 1,475.62, moving below the psychological benchmark of 1,500. The Nasdaq composite index fell 76.42, or 2.70 percent, to 2,748.76.

The Russell 2000 index of smaller companies fell 25.81, or 3.22 percent, to 775.96.

[fitedafuture]

hard to believe we have used 5 million years worth of fossil fuels in less than 20 years....? does this seem rather stange to anyone else?

[antoniof123]

Well, this made me think that I needed to check on the value of the US dollar. The results for you neocon traitors is that we now have third world currency status. The Canadian dollar for the first time in history is now worth more then the US dollar. It will cost you 1.10 for every US dollar. The Euro is now approaching and almost there 1.50 per US dollar.

For you stupid neocons what this means is we pay more for everything. God 2008 is going to be a blood bath for you Republicans.

[fitedafuture]

a new world order, rapidly approaching.

[fedup071]

Where is our Goverment? We are paying more and more for fuel, but the OIL companys are making Record Profits (Exxon cleared 39 Billion dollars last year)
DOESN"T ANYBODY SEE THE CRIME HERE!!!!?????

[fitedafuture]

i live in a deregulated electric power area of Texas, I wish like that monopoly our goverment would step in and rat out these oil thieves,not gonna happen..

[radiob-2009]

Keep your eyes and ears on the truckers and follow suit. Nation wide strike and boycott. Take our nation back.

[fitedafuture]

makes me wonder? where are the storing those huge vats full of oil barrells? rationing off what they think we need,? , well they got the guns but we got the numbers..

[fitedafuture]

this turn of events will surely end the middle class, only rich and very poor will remain..figures huh?

[fitedafuture]

*** the man!

[fitedafuture]

didnt something like this happen to the Roman Empire,strange how history repeats itself...?

[radiob-2009]

Good morning Ozzy I was thinking more on the lines of a good old fashioned tea party with all 436 (including the president)"teas" being "dumped" into the river. I will settle for a national strike and boycott. The truckers are almost there.

[fitedafuture]

these oil prices are an extortion on the American public,plain and simple..

[omega39-2009]

HAHAHA...Remember that $25 dollar a barrel price under Clinton, vote Buuuusssssshhhhhh!

[keeblers69]

I remember back in the 70''s and all the trucks pulled off the road and went on strike. Wouldn''t that be something if that happened again.

[lewiston14]

Even if the truckers who is it going to hurt most? I think we would. Sure it would shut all the junk coming coming from other countries (where most of our stuff comes from) But it would also shut down American made goods. including those pesty gas trucks. So now because goods cant move there is no point to continue to make them during such an event as invortories would stay the same. So now you cant get gas for you car but you wont need it because all the manufactures would be shut down so your told to stay home. Then the oil tank that keeps you furnace working goes dry and your electric goes out because they cant get spare parts. Sounds like a good idea to me.

[speakinup]

yup - those caribou will be safe in Alaska, the Democrats made SURE of that. To hell with national security. We don''t need to drill in those pristine wilds. Never mind that the north shore pipe-line has actually INCREASED the herds.

You liberals just don''t get it do you ? Make it so we can''t get a nuclear plant built. Stop exploration for oil. Don''t develop alternative fuels.

But by GOD, B*ITCH about what a lousy job the government has done. yup - mental midgets.

[alexma50085]

It''s sad when people need to choose between heating their home and feeding their family.

[radiob-2009]

The entire nation needs to join the truckers if they go on strike (small if from my sources), it is the key to the politicians achilles heel their wallet. Be prepared and ready.


The second American revolution needs to start to take our nation back from the corporate lapdogs on both sides of the aisle.

[omega39-2009]

yup - those caribou will be safe in Alaska, the Democrats made SURE of that. To hell with national security. We don''''t need to drill in those pristine wilds. Never mind that the north shore pipe-line has actually INCREASED the herds.
Posted by speakinup a

Maybe those Caribou herds are increasing because undocumented caribou are streaming unchecked through the porous checkpoints manned by Bush''s department of homeland security. Have you checked them for Korans speakingup, a fanatical caribou bent on destroying the US economy through oil deprivation can be a dangerous thing.

[speakinup]

"IRAN dumped the dollar and switched to the EURO wait until CHINA and MEXICO begin dumping the declining US dollar... kingdom rise kingdom fall....what''''s in your wallet? - sunsetbillyb

sunsetbillyb - you are such a fear monger. China simply can''t afford to ''dump'' the dollar - they own too many of them - it would be suicide for their ruling class, because none of their people would have work.

Got Brain ?

[radiob-2009]

Since when were Truckers liberals? What pipe are you smoking?

[usayesterday]

The entire nation needs to join the truckers if they go on strike (small if from my sources), it is the key to the politicians achilles heel their wallet. Be prepared and ready.


The second American revolution needs to start to take our nation back from the corporate lapdogs on both sides of the aisle.

Posted by radiob at 09:12 AM : Nov 07, 2007
..............

I hope that actually does happen, and I hope it is well advertised/publicized prior to the event.

I will make sure to call in sick that day (or days)! I hope everyone else does as well.

[jowand]

The entire nation needs to join the truckers if they go on strike (small if from my sources), it is the key to the politicians achilles heel their wallet. Be prepared and ready.


The second American revolution needs to start to take our nation back from the corporate lapdogs on both sides of the aisle.

Posted by radiob at 09:12 AM : Nov 07, 2007

We need to get oil out of the ground in the US we have a 400 year supply. Corrupt politicians are the real problem with oil prices.

[usayesterday]

One of the main steps for the ruling elite to create the perceived need for a North American Union...

...devalue the dollar.

[usayesterday]

Canadians probably never dreamed that their dollar would be worth $1.09 U.S. dollars!

(source: www.xe.com)

[hungry1968]

sunsetbillyb - you are such a fear monger.

Got Brain ?

Posted by speakinup at 09:15 AM : Nov 07, 2007



You support Bush and you have the b*lls to call somebody else a fear monger?!?!?

He''s based his whole presidency on fear!!

[hungry1968]

We need to get oil out of the ground in the US we have a 400 year supply. Corrupt politicians are the real problem with oil prices.

Posted by jowand at 09:23 AM : Nov 07, 2007


We need to find alternatives to oil. Our government should have started to fund this research in the oil crisis of the late 70''s. It''s not too late to start, but they sure as he11 should start to do some serious research - not just lip service.

[rowdytexan2]

Chalk another one up to the republicants and their oil buddies. By forcing up the price of fuel to heat your home is just another way to put pressure on the public to let them go steal oil from the middle east.

Murdering bustwards!!!

[speakinup]

"The second American revolution needs to start to take our nation back from the corporate lapdogs on both sides of the aisle. Posted by radiob

radiob - first off - I agree with you. Now, I know you are angry - but you come across MUCH more effective when you don''t name call. By calling politicians, "lapdogs" - you just turn off those that would listen to you that are on the verge of turning to independents.

The ONLY way a third party can happen - or I should say the lack of the two current parties - is for a massive change from both parties to independents.

If either side detects that they lost the election because of independents, then they won''t vote in the next election for them. Remember Ross Perot ? He pulled votes from Republicans - the next election, we didn''t see an independent of any significance. Or, did we ?

[v_1618]

STOP OIL RISE.. THIS IS INSANE IF THE OIL RISE THE FOOD RISE TOO.. COME ON IS NOT FUNNY..
STOP THIS ****..

[hungry1968]

Canadians probably never dreamed that their dollar would be worth $1.09 U.S. dollars!

(source: www.xe.com)

Posted by USAyesterday at 09:25 AM : Nov 07, 2007


We live near Buffalo, and my girlfriend and I take regular trips to Canada just to get away. The dollar was worth $1.60 when I started, and it''s been falling regularly since then. Now, the Canadians are coming here for vacations and Christmas shopping, because our dollar''s value has dropped so dramatically.

[speakinup]

"You support Bush and you have the b*lls to call somebody else a fear monger?!?!?
He''s based his whole presidency on fear!! Posted by hungry1968

Feel better hungry ?

So if you don''t mind me asking - what did your comment accomplish ? Mine was truth - you can''t dispute that. Your''s was opinion - one that I respect. Sure - you got the zinger in. You win - I admit it.

But let''s look beyond the zingers here. It does no one any good to create fear where it should not exist.

[oscarez]

Crude oil For 2005:

U.S. Crude Oil Production 5,178,000 barrels/day
State Ranking of Crude Oil Production Texas - 1,062,000 barrels/day
U.S. Crude Oil Imports 10,126,000 barrels/day
U.S. Crude Oil Imports from OPEC 5,587,000 barrels/day
U.S. Petroleum Product Imports 3,588,000 barrels/day
U.S. Petroleum Product Imports from OPEC 771,000 barrels/day
U.S. Net Petroleum Imports 12,549,000 barrels/day
Top U.S. Total Petroleum Supplier Canada - 2,181,000 barrels/day
Top Oil Producing Countries & Exporters

U.S. Petroleum Consumption 20,802,000 barrels/day
Dependence on Net Petroleum Imports 60.3%

Alaska had a total of 4,171,000,000 barrels of oil reserves

The total of Alaska oil reserves would supply the U.S.A. for 200 days in 2005

source:
http://www.eia.doe.gov/neic/quickfacts/quickoil.html

[pbrentz]

The American Trucking Industry has been dealing with the high cost of fuel for much longer then the regular consumer, if your worried about the price of gas at the pump you should start worrying about the cost of everything else. All the goods that are used in this country are hauled by a truck at one time or another. So what is the country going to do about the high cost of diesel fuel. They help out the airlines, they help out the farmers, so when are they going to help out the people who haul all our goods.

[pbrentz]

The American Trucking Industry has been dealing with the high cost of fuel for much longer then the regular consumer, if your worried about the price of gas at the pump you should start worrying about the cost of everything else. All the goods that are used in this country are hauled by a truck at one time or another. So what is the country going to do about the high cost of diesel fuel. They help out the airlines, they help out the farmers, so when are they going to help out the people who haul all our goods.

[clestes-2009]

Just wait until that fool in the white house bombs Iran as he is determined to do. He doesn''t care that the American people are going to suffer enmass. All the cares about is that his oil buddies get more money and his legacy. He THINKS his legacy is going to be one of a great war president, but really it is going to be one a foolish, stubborn, stupid man who had no business being president and did more damage to this country and to world peace than any other in US history.

The only good thing is that he is going to live long enough to see all his initiatives wiped away and his name linked to Harding as the worse president.

[hungry1968]

Posted by Oscarez at 09:47 AM : Nov 07, 2007

I''ll say it again:

"We need to find alternatives to oil. Our government should have started to fund this research in the oil crisis of the late 70''s. It''s not too late to start, but they sure as he11 should start to do some serious research - not just lip service."

Posted by hungry1968 at 09:39 AM : Nov 07, 2007

[crzyboutben]

With the gas price rising way out of control, will the states/government raise minimum wage so that we have a way to pay for it?

[speakinup]

"We need to find alternatives to oil. Our government should have started to fund this research in the oil crisis of the late 70''''s. It''''s not too late to start, but they sure as he11 should start to do some serious research - not just lip service. Posted by hungry1968

AMEN!

It is my understanding that the US has more shale oil deposits than Saudia Arabia has in oil.

So, with the price of oil above $80, shale oil is profitable if it is extracted ''in situ''. See the wikipedia article.

http://en.wikipedia.org/wiki/Oil_shale

I''m guessing that shale oil is not being explored because there has to be some sort of guarentee that the price won''t drop below the minimum of $80 a barrel - otherwise the fixed cost of the extraction won''t ever be able to be amortized - something big business wouldn''t be willing to do.

[crzyboutben]

With the gas prices soaring way out of control, will the state/government raise the minimum wage so that we have a way to pay for it? I believe that it is going to get to a point were the lower income americans are not going to be able to support their households due to the long stretching effects of higher oil prices. There has got to be some kind of solution to this problem that doesn''t result in the lining of the oil baby''s pockets.

Let''s not forget about the little people down here that actually make this world work.

[speakinup]

"Um...speakinup...uh...hate to break it to ya but the fear tactics are directly from the GOP side of the isle. ''Fear'' ''fear'' ''fear'' is what many of us are railing against. Posted by jh6379

ok - jh6379 - for the sake of the discussion, once again...

You have your opinion, which I respect, and I have mine - which I''m asking you to respect.

Now, just for the time being - let''s say you are right - and fear is being generated intentionally...

Does it help for anyone else to create any other fears ?

Or, would you rather discuss something of VALUE ?

You want a score - ok - jh6379 1 point, speakinup zip.

There, happy ?

Let''s get on with discussing what can be done about a lack of oil - does that work ?

[hungry1968]

I''''m guessing that shale oil is not being explored because there has to be some sort of guarentee that the price won''''t drop below the minimum of $80 a barrel - otherwise the fixed cost of the extraction won''''t ever be able to be amortized - something big business wouldn''''t be willing to do.

Posted by speakinup at 10:09 AM : Nov 07, 2007



I''m saying that we need to try to find a way to abandon foreign oil completely. At some point, all of the world''s oil is going to run out - if not now then in the next several hundred years. Our country WAS the greatest because of our technology and innovation. We need to get that back, and find a way to make ourselves energy independent PERMANENTLY. Not just temporarily through this latest energy crisis.

[speakinup]

hungry1968 - I understand, AND agree.

Let me repeat - there is MORE shale oil in the US than liquid oil in Saudia Arabia. Right here in the good ''ole US of A.

I say we shuld at least talk about nationalizing the oil industry, if we can''t do it any other way, and get the oil flowing.

THEN, we start to work on things like tidal power being reaped. Use wave power in the Oceans to create electricity.

These Wars for Oil sure are working out pretty well.

[speakinup]

sunsetbillyb - got anything constructive to say ?

We all know you hate Bush.

How about being an enabler here, not just stating your opinion.

Leaders (and I''m not saying I"m a good one) don''t concentrate on blame, but they do concentrate on making things simpler for people to understand.

I''m inviting you to join this discussion - but let''s stop trying to incite each other - has it helped to date ?

[micma-2009]

Wow! $100 a barrel! Thanks Bu$hies!

By next summer we''ll be paying $4.00 a barrel and the economy will have slipped into a full recession. Sure is great that we''re spending thousands of lives and 2 trillion dollars invading the wrong country. Bu$h and his supporters are morons.

[micma-2009]

Wow! $100 a barrel! Thanks Bu$hies!

By next summer we''ll be paying $4.00 a gallon and the economy will have slipped into a full recession. Sure is great that we''re spending thousands of lives and 2 trillion dollars invading the wrong country. Bu$h and his supporters are morons.

[speakinup]

splamco - feel better ? Now we know your opinion - got something worthwhile to contribute, or did you log on to flame ?

[oscarez]

"I''''m guessing that shale oil is not being explored because"

Because shale oil mining is either too dirty or too energy negative. This means it takes more energy to recover the oil than the energy the oil produces.

Source:
http://www.hubbertpeak.com/laherrere/OilShaleReview200509.pdf

[hungry1968]

Let''''s not forget about the little people down here that actually make this world work.

Posted by crzyboutben at 10:14 AM : Nov 07, 2007



That''s not how Bush and ALL of the other politician''s work. And I mean ALL as in both Democrats and Republicans. They operate on the wishes of the lobbyists and big donations to their campaign accounts by big businesses and big business owners, CEO''s, etc, etc.

The people in the middle and lower class are to be tolerated - not listened to. If you want change, then vote independent across the board, for every race.