Wall Street Ends Worst Week Ever

Capping 8 Straight Days Of Massive Losses, Dow Ends Seesaw Session With 128-Point Drop

(CBS/ AP)  Wall Street capped its worst week ever with a wild session Friday that saw the Dow Jones industrials rocket within a 1,000 point range before closing with a relatively mild loss and the Nasdaq composite index actually end with a modest advance. Investors were still agonizing over frozen credit markets, but seven days of massive losses made many stocks tempting for traders looking for bargains.

The Dow lost 128 points, giving the blue chips an eight-day loss of just under 2,400. The average had its worst week on record in both point and percentage terms, as did the Standard & Poor's 500 index, the indicator most watched by market professionals.

The hair-trigger mentality of the market - a reflection of the intense anxiety on the Street - was evident from the opening bell. The Dow fell 696 points in the first 15 minutes, recovered to an advance of more than 100 before the first hour was over, then turned sharply lower again before moving in swings of hundreds of points at the day's end.

Investors have spent much of the past month shuddering over a credit market that remains frozen, posing a threat to the economy. But Friday's gainers included financial stocks, the ones most decimated amid the ongoing banking and credit crisis.

The major indexes' sharp swings throughout the day were likely exacerbated by the computer-driven "buy" and "sell" orders that kicked in when prices fell far enough to make some stocks look like attractive bets or make other investors want to exit the market. The spurts of buying didn't reflect an easing of the market's despair, and trading is likely to remain volatile when the market reopens on Monday.

"Fear has been running rampant all over the Street. Fear and greed, that's what rules the Street. I think the carcass has been stripped to the bone," said Dave Henderson, a floor trader on the New York Stock Exchange for Raven Securities Corp.

As nervous investors have been pulling billions out of the market, one business has been profiting: sales of home safes are up 75 percent according to America's biggest safe maker, reports CBS News correspondent Anthony Mason.

According to preliminary calculations, the Dow fell 128.00, or 1.49 percent, to 8,451.49. At its low point Friday, the Dow was down 696 at 7,882.51, just 60 points above its low in Wall Street's last bear market, 7,286.27, reached Oct. 9, 2002. It crossed the line between gains and losses 32 times during the session.

The Dow rebounded from a low of 7,882.51 for the day - the worst trading level since March 17, 2003. Still, its closing level Friday was the lowest since April 25, 2003.

The Dow has lost 1,874.19 points, or 18.2 percent, over the past week. Its dismal performance outdid the week that ended July 22, 1933, which saw a 17 percent drop - and back then, during the Great Depression, there were six trading days in a week.

Some traders are hoping the steep sell-off late Thursday and early Friday - 1,000 points in just two hours - finally signaled a bottom, reports Mason.

Broader stock indicators were mixed. The Standard & Poor's 500 index fell 10.70 or 1.18 percent, to 899.22, while the Nasdaq composite index rose 4.39, or 0.27 percent, to 1,649.51.

The Russell 2000 index of smaller companies rose 23.28, or 4.66 percent, to 522.48, perhaps a welcome sign for investors as small-cap stocks are often first on investors' shopping lists when they think a market turnaround is at hand.

President Bush said Friday the government's efforts to rescue the financial sector was powerful enough to succeed but that it would take some time to be fully implemented.

Late Friday, Treasury Secretary Henry Paulson said the administration will move ahead with a plan to buy stock in financial institutions. Paulson said the program to purchase stock in financial institutions will be open to a broad array of institutions.

Finance ministers and central bankers from the Group of Seven nations gathered Friday in Washington to discuss the economic meltdown.

Officials from the G-7 issued a five-point plan aimed at unfreezing a credit crisis that has unhinged Wall Street and markets around the globe. The group pledged to take "decisive action and use all available tools" to battle the crisis, to protect major financial institutions in their countries and to keep them from failing.

Most major central banks around the world slashed interest rates this week after continuing problems in the credit market triggered concerns that banks will run out of money. Analysts have described the mood on trading floors this week as panicked at times, with investors bailing out of investments on fears there is no end in sight to the financial carnage.

A stream of selling forced exchanges in Austria, Russia and Indonesia to suspend trading, and those that remained opened were hammered. The rout in Australian markets caused traders there to call it "Black Friday."

European stocks sank Friday, with Britain's FTSE-100 falling 8.85 percent, German's DAX declining 7.01 percent, and France's CAC-40 ending down 7.73 percent.

London stocks have lost more than a fifth of their value just this week, reports CBS News correspondent Richard Roth.

In Asia, the collapse of Japan's Yamato Life Insurance caused already nervous investors to pull even more money out of the market - the Nikkei 225 fell 9.6 percent.

CBS News correspondent Barry Petersen reports that Asia depends on exports, which are hurting - Toyota stock is down 40 percent as U.S. sales tumble.

[cariboubarbi]

Hey there Repubs. Maybe Bush and McCain will think up some way to De-Regulate us out of this mess? Or perhaps we can find another trickle down economic solution to shore up the rich?

[maine11111]

There''s no ending in sight for the U.S. economy woe''s

[legacyabq]

People it''s worth it to spend a little more, to buy things from America, sold by smaller companies whose stock, traded at all, isnt owned entirely by china.
Almost everything you spend at walmart, for example, goes to China. Everything they sell is made in the far east. Have you not notcied how terrible the quality is???? Why would you want that ***????
Buy local! Bring back the manufacturers!
Saving a few bucks is not worth it in the long run, if the dollar is devalued and the economy collapses!
Think about it!!
Boycott products made in RED CHINA

[cariboubarbi]

Bush and McCain think that the answer to all this nations problems is to move more money from the hands of the working class into the already full pockets of the rich.

Hey, maybe it will trickle down right?

If, when the trickle finally reaches you, it looks and smells like urine....that''s because it is!


Thanks for voting Republican!

[creeper00]

Barbi,

If you''d been paying attention you would know that it was Republicans who tried to put a stop to the $700 billion bailout of the greedy bankers. If you''d been paying attention you would know that the original deregulation legislation that started this disaster was signed by Bill Clinton. Democrats stink just as badly as Republicans in this one.

Signed,
Former Democrat

[legacyabq]

Oh God nevermind, it''s too late! It''s too late!!
There ARE no american companies left manufacturing anything (except assembling cars from chinese parts) so its too late to bring back jobs.. Thank you everyone who over the last 30 years bought from red china and shopped at big box stores, putting mom out of business, just to save a measly 5 bucks..
Screw that!!
Buy from the US, if thats still possible anymore!!

[melpol1]

The value of stocks have been dropping for over a year and have lost trillions in value. Many have seen their life savings gone with the wind.But there is still hope that the downward slide will hit a bottom and stocks will rise again.The big question is: Where is the bottom?. The correct answer is that the bottom is zero. The American currency is backed only by faith that it is worth something. If the public loses that faith it is worthless. There was a time when each dollar could be redeemed by gold. If you would rather hold gold, a teller at the bank would exchange it. The dollar was worth its weight in gold. In 1933 it all changed Franklin D.Roosevelt helped pass the law that it was illegal to possess gold. Then the dollar had value only on the faith that it was worth something. My advice to the public is to keep the faith and we shall overcome.

[drivelphobe]

All the hype about the bailout and capital infusion, stimulus, and lower interest rates was and is BS. The depression is coming no matter what they try to do to cover their scheming rear ends. Jail for the violators.

Now Pelosi wants another stimulus package for the illegals, indigent and non-working leeches?

Most people, who live within their means, will be fine. The scumbags who constantly live on credit, cigarettes, drugs, anti-depressants and booze are gong down the toilet. This is a natural cleansing of the garbage in our society. It will take down most of the parasitic vermin who have had a hand in this economic fiasco. The modest can and will survive. Those living on the high cash flow edge will perish and so will the bottom feeders, who constantly suck every entitlement out of our system. Let''s get it on.

One benefit of this chaos is there should be a massive reduction in the numbers of fat people as they have less money for fast food to stuff down their throats.

[sepa2]

Up until 1970s largely through innovative and productive bussinesses people made money in US capitalist system.Then gradually along with so called service economy avenues were opened to make money by gimmicks. MBAs, bankers, financial experts hold the noose. Those people who generate real wealth and knowledge like scientists, engineers, workers, planners became second fiddle. Schemes were developed (with effective support from legislature through deregulations)to make money by mere pushing papers. We are reaping the results of this transformation and unfortunately none of those who mastermind these schemes suffer

[gop_will_win]

The good news is I now own General Motors.

The bad news is I don''''t know what to do with it now that I own it.

Anyone wanna buy a Chevy?


--------------------------------------------------------------------------------

Posted by tuckerndfw
====================
Should have bought Schwinn.

[redbds]

It seems to me that every time the government tries to intervene, the market goes down.

[donevis-2009]

There%u2019s more to this %u201Cfinancial emergency%u201D than subprime mortgages and escalating risk in the derivatives market. The watchdogs of these big players have been very lenient and indulgent over the years. Naked short selling played a big part in the cause of the last Great Depression. Naked short selling is a bet that the stock will diminish in value, but unlike short selling the naked short seller doesn%u2019t deliver the stock that was promised when the short sale was transacted. It%u2019s an incomplete transaction, a breach of contract. The result is a %u201Cphantom stock%u201D not too different from counterfeit money and with much the same result. According to some investigators it could cost over one trillion dollars to clean up the phantom stocks that are in the system. Add that to the transparent mess of right now and it mounts up triple whammy for us taxpayers.

[helloall34]

So, Bush is gonna speak at 10:25... He should really have someone else speak, nothing he says is going to be helpful. No one has any confidence in anything he says or does. The US is where it is because we elected him, party political won over common sense.

[gop_will_win]

We need more tax cuts for the rich for this to stop.

[helloall34]

But, what really caused the crisis is stupid Americans who spend more than they earn. If Americans had saved money instead of borrowing it, there would be no crisis.

Ditto for the federal government.

Wanna buy a Chevy?

Posted by tuckerndfw at 10:20 AM : Oct 10, 2008

==========================

True but we use to have regulations in effect to prevent obviously unqualified people from getting loans.

[gop_will_win]

Wanna buy a Chevy with the bicycle seat option?


--------------------------------------------------------------------------------

Posted by tuckerndfw
====================
No thanks, I am happy with my Checker Aerobus. I love the gas mileage.

[zaqxsw22]

John McCain and George W. Bush%u2019s Republican party exists solely for the betterment of corporations and the wealthy (look how they govern!), but they sucker the white lower middle-class into voting against their own economic interests by throwing divisive wedge issues at them that appeal to their basest instincts: racist, homophobic, etc, while hiding behind fake religious piety. When it works, it works, and when it doesn''t the GOP just tries to outright steal elections through bogus voter purges, and voting machine manipulation. The GOP deceptively distracts working-class whites with the southern strategy while at the same time destroying their economic future by governing exclusively for the top 1%.

[yeswecan09]

The good news is I now own General Motors.

The bad news is I don''''t know what to do with it now that I own it.

Anyone wanna buy a Chevy?
******

Now that made me laugh!

A: Close the markets for a week, let money begin to flow from bailout (I was/am against bailout) but give it a chance to see if it changes anything.

B: Tell the press and their "experts" to give it a break, all their doing is feeding the panic.

C:Tell Bush to stay home, his credibility is gone.

[redbds]

You can believe what you want. There are multiple causes for this crisis. But, the market also reacts to the current political situation. The prospect that Barek Oblama will be elected President is also impacting the market. Many big investors took their money out of the market to avoit capital gains taxes that Oblama wants to implement. If you ask me the market does not like Oblama.

[donevis-2009]

Tucker, Let get this straight! Big players dealing non existing (counterfit) stocks to pad their commission income, than laughing all the way to the bank as the trail is buried in computer data banks. Don''t know if I''m buying a Chevy or just the title with now vehicle and a fake VIN number.

[whitemale08]

Republican Bush is going to do another ''sweater speech''. Look at how pathetic Bush sounds.

George Bush is the worse president the world has ever seen.

A complete and utter disaster and misereable failure!!!

Thanks Republicans, what a catastrophe for the world.

The prospect that Barek Oblama will be elected President is also impacting the market. Many big investors took their money out of the market to avoit capital gains taxes that Oblama wants to implement. If you ask me the market does not like Oblama.


--------------------------------------------------------------------------------

Posted by redbds at 10:31 AM : Oct 10, 2008

OH, BS, The market wouldn''t react to this yet, it might AFTER the election actually takes place, even then they have till January.

[lloydbest1]

I''m afraid the market panic has taken on a life of its own. This means nothing, not even God Himself, can now stop the slide. Millions of hard working Americans (as well as a few uber-wealthy market manipulators) will be utterly ruined if they are not already. I, myself put together what I thought was a foolproof portfolio of various risk/reward investment strategies to cover all contingincies. Although it sorta-kinda paid off in that I "only" lost about 30% of my top value, I didn''t have all that much to start with and I am old enough that retirement is pretty much compulsory within the next few years. I''m gonna have to learn to like Top Raman and extend my food budget by salvaging road kill.
My point is there''s NO rescue and NO safe harbor. I derive no joy when predicting this but I believe the DJIA will fall below 2000 before the end of the year; perhaps before the end of this month. This is a wild guess, but based on market performance up to now and the continued gross overvaluation of the market - in spite of the recent precipitous drop; the DOW may bottom out somewhere around 400 to 600, levels not seen since the mid 50''s
What this means if you have the cash, go conservative. Put as much as you can stand into passbook and/or CD accounts. If you can apare the funding, look into interest bearing checking accounts. These are presently backed to $250000 by the FDIC. Interest rates on these things will fall to nearly 0 but that''s still better than burying the stuff in the back yard.

[whitemale08]

Who would''ve thought that Bush could do more damage from the White House.

Now he managed to bring down the world wide financial system.

IT''S THE DERIVATIVES STUPID!!!

[whitemale08]

Not only has Bush destroyed our economy but he''s managed to single handedly obliterate the retirement savings of the BABY BOOMERS!!!

401ks and PENSIOUN FUNDS are being RAVAGED!!!

[redbds]

The stock market is responding to the collapse in the financial markets and according to Paulson, that collapse was due to "bad mortgages" which is layman''''s speak for "credit default swaps."

Posted by tuckerndfw at 10:35 AM : Oct 10, 2008

Yes bad mortages is at the root of the credit crisis. Howm buyers baught bigger houses than they could afford, lenders gave mortgages to people that should have been renting, community organizations like ACORN pushed to get low income families into homes they could not afford, democrats in congress block attempts to address the problems with Fanny and Fredie. The list goes on and on. There is not one single cause for any of this. You have to remember that the market is not an organization it is a bunch of individual investors. When the big money investors get nervous about things they pull out of the market. Then the smaller investors start pulling out. When the government tries to help things just get worse. The government needs to stay out of the market and let it get through this adjustment.

[whitemale08]

If we were smart we would put Ralph Nader or Bob Barr who both were vehemently against the bailout for Wall Street.

But what ''stupid is stupid does''.

[whitemale08]

We are being told that ''finance ministers'' around the world are coordinating a WORLD WIDE STOCK MARKET SHUT DOWN!!!

And now Hank the Snake Paulson is being referred to as a "Finance Minister"...huh?

Why is Paulson being referred to as a ''Finance Minister'' like some 3rd world IMF / WORLD BANK borrower country?

I thought Paulson was a "Treasury Secretary" which implies that there''s ''treasure'' in the U.S. vaults like gold and silver.

Now he''s "Financial Minister" which means he''s in the Dept. of Debt and Finance.

What a joke.

[donevis-2009]

Right on Tucker; I''ll sell off 3 million and see if I can square you up before the bell. I think a better fix would be a complete investigation of profiteer''s. Seize their assets and inject them back into Treasury accounts they drew all the bailout money from. Maybe I''ll be able to upgrade to a Caddy with a built in BS washer. Tinted window would be a real help so the IRS can''t see me laughing.

[redbds]

CALM DOWN!!!!!!!

In two years, you won''''t even remember exactly what happened.

This is just a "market correction" and the big sharks are eating the little sharks. But, average investors aren''''t going to lose anything so long as they don''''t try to join the feeding frenzy.

It will be the rare (average) person who loses anything over the long term.

Posted by tuckerndfw at 10:44 AM : Oct 10, 2008

Tucker is absolutely correct on this one. Anyone that hangs in there will be fine in the long run. Those who are jumping out now are selling low and loosing their backsides. Unless you own the stock of a company that goes bankrupt you should be fine in the long run. If I had some extra money I would get into the market next week. some good bargains can be found. a smart investor could double his money in a couple of years.

[whitemale08]

And why is Paulson and Bush meeting with the IMF today?

I told you guys that the AMERO is coming.

Right now the dollar is being devalued against an artificially propped up Yen and British Pound to create a black market.

Once that black market overwhelms the fake official market of a currency then Standard & Poors will pull the trigger and downgrade the Treasury bonds and you will see a RUN ON THE DOLLAR.

BRACE YOURSELVES!!!

[redbds]

ACORN did not cause Wall Street execs to come up with fraudulent schemes to maximize their profits.

Your lame attempts to blame Democrats is . . . well, it''''s lame.

Posted by tuckerndfw at 10:46 AM : Oct 10, 2008

It is all related tucker. ACORN pushed low income families into taking out subprime mortgages so that they could buy homes that they could not afford. The laws that allowed that were push during th eClinton administration. I am not say the the democrats are completely to blame. But, we all know which way ACORN leans.

[cariboubarbi]

No worries!


Bush''s brewing up a new program called "No Banker Left Behind".

This will insure that as the financial system crumbles, the bankers who caused the destruction will be able to walk away with their multi-million dollar severance packages.

It''s only fair that the American taxpayer should have to pick up the tab.

CALM DOWN!!!!!!!

In two years, you won''''''''t even remember exactly what happened.

This is just a "market correction" and the big sharks are eating the little sharks. But, average investors aren''''''''t going to lose anything so long as they don''''''''t try to join the feeding frenzy.

It will be the rare (average) person who loses anything over the long term.

Posted by tuckerndfw at 10:44 AM : Oct 10, 2008

Correct! I''ve been saying that for nearly two weeks now. Selling off at what you think is the bottom is a fools game, that''s when you truly lose. I''ve been buying on the bottom for years. Took my lumps in 87, Made it all back and a large sum more.

Fear and Panic, we''ve been well traind in that since 911

[whitemale08]

I lived in a 3rd World Country and the United States is no different.

When ''Finance Ministers'' like Hank the Snake Pauslon and helicopter Ben meet with the Finance Ministers of the IMF / WORLD BANK that means a new currency peg is being developed to stabilize the markets.

That currency peg will be against the new Amero which will force us to dump our ''dollars'' in exchange for the more stable Amero.

I know what I''m talking about because I''ve seen it happen so many times.

[donevis-2009]

Sorry Tucker, I went to the levy but it was dry. Something about The Army core of engineers not doing a good Job??!! They took my Chevy to. Still got that Bicycle seat?

[cariboubarbi]

It is all related tucker. ACORN pushed low income families into taking out subprime mortgages so that they could buy homes that they could not afford. The laws that allowed that were push during th eClinton administration. I am not say the the democrats are completely to blame. But, we all know which way ACORN leans.

Posted by redbds at 10:54 AM : Oct 10, 2008
+ report abuse



*******,

The majority of people who ended up with these "sub-prime" loans had good credit, good jobs and qualified for conventional loans. Lenders paid loan officers big commissions to steer borrowers into these predatory loans.

I guess that blaming the victim and bailing out the criminals is the Republican way.

[tejasdemo]

Hey Republicans ......I am holding up 3 fingers..

Guess which one if for you a holes ?

[petro49l]

George W. Bush knew about the 9-11 Disaster before it happened. He told the USAF not to shoot down those two passenger jets. The consequential war raised the price for a barrel of oil sold by the Saudis. Bush is not to be trusted.

BLACK FRIDAY: DOW DOWN -246pts
SELL,SELL.SELL!!

Posted by Hacker11001 at 10:59 AM : Oct 10, 2008

Keep fueling the Panic and fear.

[redbds]

George W. Bush knew about the 9-11 Disaster before it happened. He told the USAF not to shoot down those two passenger jets. The consequential war raised the price for a barrel of oil sold by the Saudis. Bush is not to be trusted.

Posted by Petro49L at 11:02 AM : Oct 10, 2008

You are just an idiot.

[random_radar]

The Democrats control congress. Pelosi and Frank are crowing about how they bailed out the rich Republican bankers. They are all working together.

[donevis-2009]

By the way Tucker, Some bimbo named Palin was trying to sell me some American Pie but all she good do is wink her eye and say bye-bye. It was fun to watch her walk away, nice view, just ask McCain

[whitemale08]

NOW THEY WANT TO LOWER INTEREST RATES TO ZERO!!!!

Just when they wiped out 401ks and Pension Funds now they are going to wipe out CD''s and Government bonds because you will gain next to zero interest.

Now do you believe me when I say that there will be a RUN ON THE ''DOLLAR''????

[gopack443]

Did anyone really think borrowing another 700 billion was going to correct the problems of the already huge defect? IMPEACH!

[gop_will_win]

INVEST IN CAMPBELLS SOUP! PEOPLE WILL BE FORMING LINES FOR IT SOON!

[gop_will_win]

The market has stabilized for the last 5 minutes, I think its over.

[t_barr]

Preliminary valuations on the Lehman CDS is 10%. They hold around $400 Billion. That means that Someone(s) (those who wrote the Insurance) are going to have to front ~$350 Billion Dollars to cover the Losses.

Others hold the same type of CDSs as Lehman, valued at 55 TRILLION. Anyone want to guess what 90% of 55 TRILLION is?

This is the same c r a p that Paulson wants the Taxpayers to buy.

FACTBOX - Lehman CDS settlement Auction Timeline
www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN0841811720081008

[whitemale08]

Why is GE borrowing money from the TAF window of the Federal Reserve?

That''s our tax liabilities handed out the door to a company that''s still paying a dividend and helping Iran develop it''s nuclear power.

And GE just recorded a profit, so again I ask...

Why is GE (Wall Street private company) getting money from the Federal Reserve?

GE is not a bank!!!