Stocks Plunge On Recession Fears

Dow Drops 733 Points As Fed Issues Gloomy Report, Retail Sales Show Steep Drop

(CBS/ AP)  Despair over the economy sent Wall Street plunging again Wednesday, propelling the Dow Jones industrials down 733 points to their second-largest point loss ever. Stocks fell on a combination of disheartening economic data, including a big drop in retail sales and a Federal Reserve report that said tight credit conditions are hurting businesses across the country.

The government's report that retail sales plunged in September by 1.2 percent - almost double the 0.7 percent drop analysts expected - made it clear that consumers are reluctant to spend amid a shaky economy and a punishing stock market.

The Commerce Department report was sobering because consumer spending accounts for more than two-thirds of U.S. economic activity. The reading came as Wall Street was refocusing its attention on the faltering economy following stepped up government efforts to revive the stagnant credit markets.

The release of the Beige Book, the assessment of business conditions from the Federal Reserve, added to investors' angst. The report found that the economy continued to slow in the early fall as financial and credit problems took a turn for the worse. The central bank's report supported the market's belief that difficulties in obtaining loans have choked growth in wide swaths of the economy.

"Even though the banking sector may be returning to normal, the economy still isn't. The economy continues to face a host of other problems," said Doug Roberts, chief investment strategist at ChannelCapitalResearch.com. "We're in for a tough ride."

Fed Chairman Ben Bernanke offered a similar opinion, warning in a speech Wednesday that patching up the credit markets won't provide an instantaneous jolt to the economy.

"Stabilization of the financial markets is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away," he told the Economic Club of New York.

Analysts have warned that the market will see continued volatility as it tries to recover from the devastating losses of the last month, including the nearly 2,400-point plunge in the Dow over eight sessions. Such turbulence is typical after a huge decline, but the market's anxiety about the economy is also expected to cause gyrations in the weeks and months ahead.

The Dow has closed up - or down - in triple digits in 19 of the last 23 trading sessions, reports CBS News correspondent Anthony Mason. And if you take away last Friday's record 900-point rally, the Dow's been down every day this month.

Selling accelerated in the last hour of trading, a common occurrence during the eight-days of heavy declines. One reason for the heavy selling: Mutual funds need to unload stock to pay investors who are bailing out of the market.

Is there a silver lining?

Oil fell below $75 Wednesday - almost half what it was in July, which means gas prices are heading back to $3 in a hurry, reports Mason.

But prices fell because we're simply driving less - demand last week was nearly 10 percent lower than a year ago. While that's pushing down the price, it's also a sign of a deepening recession, adds Mason.

Investors apparently have come to believe that Monday's big rebound, a response to the government's plan to invest $250 billion in banks to get the lending business restarted, was overdone given the problems elsewhere in the economy.

"It really doesn't come as a shock after Monday's gains were I think a little bit excessive," said Charles Norton, principal and portfolio manager at GNICapital, referring to the market's pullback.

He contends that the government has taken so many steps that investors must now wait for some of the actions to help steady the economy.

"It seems like all the tools in the tool chest have mostly been used now and now it's back to reality," he said. "We're still faced with the fact that the economy is slowing and earnings aren't very good."

Doubts about the economy were already surfacing in Tuesday's session, when investors halted an early rally and began collecting profits from stocks' big Monday advance. Wednesday's data confirmed the market's fears that the economy is likely to remain weak for some time, and that corporate profits are likely to suffer.

Mark Coffelt, portfolio manager at Empiric Funds, said moves by European and U.S. government officials to begin investing directly in banks are easing worries about credit. But the steep pullback in stocks that began last month after the credit markets lurched to a near standstill has now created worries that consumers will spend less after seeing the value of their retirement accounts and other investments drop.

"Markets abhor uncertainty and so we got a lot of that resolved this weekend and we got the reward Monday but now people are saying 'OK, now what is the economy going to do?"'

"We're definitely going to get a slowdown from the terror of going through that," Coffelt said.

According to preliminary calculations, a sell-off that intensified late in the session left Dow down 733.08, or 7.87 percent, at 8,577.91. On Monday, Sept. 29, the Dow had its largest point drop 777.68. The Dow's massive decline marks its 20th triple-digit move in 23 sessions.

Broader stock indicators also skidded. The Standard & Poor's 500 index fell 90.17, or 9.03 percent, to 907.84, and the Nasdaq composite index fell 150.68, or 8.47 percent, to 1,628.33.

[donevis-2009]

Well here we go again. The stock market e-ride to the cellar, going down. "All Aboard". How quick will the "Post Plants" be making comments about how much money they made on their smart investments?

[oscarez]

All the knee jerk actions by Bush, congress and the FED will not fix the crux of this problem. There is a worldwide shortage of hard currency. Just as with the depression of the 1930''s large sums of money and wealth have been transferred to just a few people. When I look at the 1930''s I think it will take at least five years to fix the money shortage.

[lewiston14]

Just think of all the stores that depend on holiday shopping to make a profit. A few months later there will be 50% less stores and that is not a bad thing as most pay less the cost of gas to get there. Holiday shopping down 25% this year. You heard it here first.

[cariboubarbi]

Trickle down economics does not work.

[donevis-2009]

Holiday shopping down 25% this year. You heard it here first.
Posted by lewiston14 at 10:59 AM : Oct 15, 2008

Christmas? What Christmas? Haven''t you heard? Santa is on the new domestic no fly list, and he''s not politically correct. Happy New Year!!

[william_lerd]

Christmas? What Christmas? Haven''''t you heard? Santa is on the new domestic no fly list, and he''''s not politically correct. Happy New Year!!


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

Posted by donevis
=====================
Dont buy anything and then go to the store the day after Christmas. They will be giving stuff away like the good old days of Reagan.

[lochlan-2009]

Until the entire Bush Family and Administration and the rest of the corrupt who plunder D.C. are in jail at the expense of American soldiers and foreign civilian lives, justice will never be real in this country.

[a2s2d]

After 8 years of REPUBLICAN STUPIDITY AD CRIMINSL NEGLIGENCE America is sick.... and just because we have stopped the vomitting doesn''t mean it''s going to be healed in a day.

The REPUBLICANS have crippled disgraced and looted America.

[Gary Kempf]

Wall St. Stocks Take A Turn For The Worse
News flash, It is time investers and speculators to get a taste of reality.....

[a2s2d]

After 8 years of REPUBLICAN STUPIDITY AND CRIMINAL NEGLIGENCE America is sick.... and just because we have stopped the vomitting doesn''''t mean it''''s going to be healed in a day.

The REPUBLICANS have crippled disgraced and looted America. It will take time to undo the malaise brought on by the GOP MAFIA.

[a2s2d]

After 8 years of REPUBLICAN STUPIDITY AND CRIMINAL NEGLIGENCE America is sick.... and just because we have stopped the vomitting doesn''''t mean our once proud nation going to be healed in a day.

The REPUBLICANS have crippled disgraced and looted America. It will take time to undo the malaise brought on by the GOP MAFIA.

[easeup-2009]

Anyone remember when the GOP and W wanted to privatize your Social Security into the stock market? FOR THAT REASON ALONE THE GOP TICKET SHOULD BE VOTED DOWN FOR ETERNITY!

Posted by kassandrasdu at 11:30 AM : Oct 15, 2008

Clinton actually had the same idea, but he wanted to put the whole enchilada in himself, not via the individual.

[nursehope]

This same type of market swinging, the ups and downs was seen during the Not So Great Depression. Let''s turn it around...NOW!
Obama/ Biden ''08. Let''s take our country back!

[txgrouch2007]

Down a few hundred one day

Up a few hundred the next day

Down a few hunred the next day

JUST LIKE 1987.

Here comes the BIG crash.

[txgrouch2007]

REPUBLICAN STUPIDITY AD CRIMINSL NEGLIGENCE
Posted by a2s2d at 11:42 AM : Oct 15, 2008

Look who''s talking about stupid.

And as usual, the libtard can''t spell.

Democrats are the LAST ones who should be accusing someone ELSE of disgracing the nation.

[easeup-2009]

easeup,

Clinton never proposed any such thing!

You''''re free to provide a source to back that up if you''''d like.

Posted by Mcliar at 12:01 PM : Oct 15, 2008

There are countless sources if you don''t like this one--google for yourself.

"With a slight change, Sen. George Voinovich (R-OH) is repeating one of former President William Clinton%u2019s most famous mistakes. In early 1999, Clinton called for the government to invest part of the Social Security trust fund in stocks and bonds as a way to increase the amount that would be available to pay baby boomers%u2019 Social Security benefits."

http://www.heritage.org/Research/SocialSecurity/wm858.cfm

[cyinzl8r]

Every Common Citizen, Who Knows a Crime is Being Committed,
is obligated by Law. To Report That Crime __ The Political-Criminal FBI,
Gives themselves IMMUNITY from That : OBLIGATION ! !

Posted by lastdance128 at 12:43 PM : Oct 15, 2008
every common citizen who signed their name to documents that had bogus info in it committed fraud. How could you not know that your income was inflated to get you a loan? Who takes a loan they know they cannot afford? Who''s fault is that?

[edward1975-2009]

What part of the bailout didn''t signal we were in trouble. Not only can''t these investors on Wall St. make sound decisions, they apparently don''t know how to read.

[lochlan-2009]

How could you not know that your income was inflated to get you a loan? Who takes a loan they know they cannot afford? Who''''s fault is that?

Posted by cyinzl8r


Not me. I didn''t lie to get my mortgage. Didn''t deregualte the banks and financial markets either. Took the fixed rate, even know, "you can refinance that ''adjustable'' later" ("no thanks, fixed please"). No late payments, all my bills payed on time and I haven''t taken a vacation since 2004. Yet, somehow billionair fat cats are getting my tax dollars to fill the banks back up from all the cash they stole through the deregulated market they payed lobbyists to bribe representatives to pass, and then, on top of that, stand by and watch while the whole fraud took place.

This government is corrupt to the core.

[patriotic9]

The money we give to the European invaders in Palestine to buy hatred, terrorism and 9/11 against Unholy land United States and God-neglected Americans, should have been spent in the United States for the Americans.
Money we give to Iraqi police and Security forces which they use in killing our same soldiers in the darkness of night, who train them during the day light, should have been used in New Orleans, Houston and CA.
Money spent in Afghanistan to build new schools should have been spent on our own school system in Washington DC where one out of ten people are illiterate and High School graduates can''''t read their High School Diploma.
It may sound harsh and selfish to some people but I personally believe in "AMERICA COMES FIRST"!

[patriotic9]

Time to end same sexx marriage in California.

The people will be heard on November the 4th, not the liberally biased California Supreme Court which overruled the will of the people the first time.

Posted by StopSocialis at 01:09 PM : Oct 14, 2008

What about the Hurricane Ike in conservative Texas?

What sin was involved there?

Their sin of supporting the killing of innocent people in Iraq for setting up the stage of battle of Armagaddon and the 2nd coming of christ?

For supporting the idea of human beings not being created equal but created as god-chosen or god-neglected based on the race or family they are born in?

For sacrificing GOD-NEGLECTED AMRERICAN MONEY, GOD-NEGLECTED AMERICAN LIVES and UNHOLY LAND UNITED STATES for a NON-AMERICAN CAUSE, NON-AMERICAN GOD-CHOSEN PEOPLE and a NON-AMERICAN LAND far away from any state or territory of the United States?

For supporting those Conservative Holy men who sodomize little boys in the same churches where they present homosexuality as sins?

[nolalou]

Time to end same sexx marriage in California.

The people will be heard on November the 4th, not the liberally biased California Supreme Court which overruled the will of the people the first time.

Posted by StopSocialis at 01:09 PM : Oct 14, 2008

Oh, that will cure our economic ills alright! Maybe McCain will make that argument in the debate tonight, that our economy is tanking not because of a mortgage crisis, but because of same sexx marriage in California.

[yeswecan09]

The Dow Jones industrials dropped as much as 515 points, more than half their huge 936-point advance from Monday, and all the major indexes fell at least 5 percent.
*****

::headdesk::

Bleh!

[ajaxtheleast]

Paulson:,,
"Here''s the money!,MAKE LOANS!!dont save it!"

Banks:,,"But we''re in a recession.,,
In a recession people tend
not have money."

So we''re back at square one and
this time banks are being watched
if not regulated.

And their first advisory:,,,
"Make loans to people in a recession
who cant afford loans."

It''s probably just that we''re
missing the true depths of
the bailout strategy.

[txgrouch2007]

America needs to get out of IRAQ.
Posted by patsy_owens at 02:26 PM : Oct 15, 2008

WRONG! America needs to ANNEX Iraq.

At this point, we NEED the oil revenue to bail out all our bailouts.

They''re running a HUGE budget surplus. They can''t spend all that money fast enough. HEY, WHY NOT PAY US BACK FOR OUR EXPENSES to put this new government in place for them???

[txgrouch2007]

Say, Congress - HOW''S THAT BAILOUT WORKING???

Let''s see now. Our annual GDP is a little more than $10 trillion. OUR NATIONAL DEBT IS NOW EQUAL TO OUR GDP.

But wait, there''s more. OUR ANNUAL TRADE DEFICIT IS APPROACHING $1 TRILLION.

The sum of all the bailouts is near $2 trillion, including the $900 billion of commercial paper the Fed issued WITHOUT EVEN MAKING THE EVENING HEADLNES.

VOTE THEM OUT!

VOTE THEM *ALL* OUT!

We need to start over again with a NEW Congress.

[getaclue777]

http://www.dailymotion.com/video/x32cxf_yuri-bezmenov

[newsjunky5]

There''s still a little more time today for the market to leap upwards. If it doesn''t, there''s always the President and his gaffs to laugh at. He''s so funny.

[newsjunky5]

WHY NOT PAY US BACK FOR OUR EXPENSES to put this new [Iraqi] government in place for them???
-------------------------------
If you mean us, as in the taxpayer, forget it. The Commander in Chief has already gotten his buddies (Halliburton, Kellogg, Brown, & Root, Blackwater, etc.) paid, by us, the taxpayers. That''s why we''re in the hole. He has no motivation to get the American People paid back.

[patriotic9]

At this point, we NEED the oil revenue to bail out all our bailouts.

They''re running a HUGE budget surplus. They can''t spend all that money fast enough. HEY, WHY NOT PAY US BACK FOR OUR EXPENSES to put this new government in place for them???
Posted by txgrouch2007 at 02:32 PM : Oct 15, 2008

Are you kidding?

Do you know who is the new Government in Iraq?

New government in Iraq are Shia Islamic Radicals appointed by those Iranian Ayatollahs who believe in killing all the non muslims in the Middle East for the 2nd coming of their final 12th imam Mehdi (Shia Islam version of Messiah).

Only person who could control these Radicals was the secular dictator Saddam Hussain whose Foreign Minister "Tariq Aziz"(their version of Secretery of State) was a Catholic and had females in the government.

Our tax money and our soldiers lives enabled Islamic Radicals to remove Saddam Hussain from power. They are now using our tax money, our weapons and training given by our soldiers to kill those same soldiers in the darkness of night who train them in the day light.

Does anybody think all these non-sense will help the 2nd coming of Christ and winning the battle of Armagaddon?

I know about one Armagaddon we currently face in the Wall Street!

[mollybee5]

OK McCain, the market is going down again, the economy is the issue. So make sure you attack Obama tonight about what matters most to all of us - Ayers. That''s right "County First"

[patriotic9]

At this point, we NEED the oil revenue to bail out all our bailouts.

They''''re running a HUGE budget surplus. They can''''t spend all that money fast enough. HEY, WHY NOT PAY US BACK FOR OUR EXPENSES to put this new government in place for them???
Posted by txgrouch2007 at 02:32 PM : Oct 15, 2008

Are you kidding?

Do you know who is the new Government in Iraq?

New government in Iraq are Shia Islamic Radicals appointed by those Iranian Ayatollahs who believe in killing all the non muslims in the Middle East for the 2nd coming of their final 12th imam Mehdi (Shia Islam version of Messiah).

Only person who could control these Radicals was the secular dictator Saddam Hussain whose Foreign Minister "Tariq Aziz"(their version of Secretery of State) was a Catholic and had females in the government.

Our tax money and our soldiers lives enabled Islamic Radicals to remove Saddam Hussain from power. They are now using our tax money, our weapons and training given by our soldiers to kill those same soldiers in the darkness of night who train them in the day light.

Does anybody think all these non-sense will help the 2nd coming of Christ and winning the battle of Armagaddon?

I know about one Armagaddon we currently face in the Wall Street!

[getaclue777]

OK McCain, the market is going down again, the economy is the issue. So make sure you attack Obama tonight about what matters most to all of us - Ayers. That''''s right "County First"


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

Posted by mollybee5

http://www.dailymotion.com/video/x32cxf_yuri-bezmenov

[newsjunky5]

"what happen to the 700 billion resue plan? "
...---...---...---

This is the result. If someone dangled $700Billion in front of you because you were too "afraid" to loan money out, you''d stay "afraid" until they gave it to you. It''s just good business sense. And by the way, there is no requirement for how they spend it.

[gop_will_win]

what happen to the 700 billion resue plan?


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

Posted by monet767
=====================
They used it to buy stocks near the close Monday you silly liberal.

[maakahill]

US Markets are reacting to the Polls and what appears to be inevitable that Obama will be President.

Among many ill advised policies, Obama plans on raising the capital gains tax from 15 to 28 per cent and the tax on dividends from 15 to somewhere between 26-39.6 per cent. Those taxes will not be limited to the "rich", regardless of where you''d like to define the cut-off for "rich.%u201D Those people who fall below Obama''s $250,000 cut-off point for income tax increases will still be affected by the increases in capital gains and dividends taxes, and that means a substantial number of retired Americans, who rely on stock dividends and the sale of stocks to survive. Don''t worry, I''m sure Obama has a social program designed to help the seniors of this once great country. For those of us who are unfortunate enough to remember the days of President Carter (1977-1981), history looks to repeat itself. Thank God for Reagan in 81. Investors hang on it''s going to get ugly, Robin Hood Obama is here to share YOUR wealth or what''s left of it.

[deckardbr]

The market is "sliding"? TIME FOR ANOTHER BAILOUT!!!
I''d take a vacation, but I can''t afford to. I''M TOO BUSY BAILING OUT BILLIONAIRES ON WALL STREET!

[drwluv4scuba]

It is not the recession investors are worrying about - They want to get out before they have to start paying Obama''s capital gains tax - Investors are savvy, they know who has their back and it sure isn''t Obama.

[hologram5]

All the whos in whoville cried boo hoo hoo...

[gop_will_win]

gop_will_win - BUT WHAT REALLY HAPPENED AFTER THE CLOSING BELL.

JUST AS I THOUGHT.......NOTHING PIG


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

Posted by monet767
======================
It went down. But nobody could have forseen this.

[kjost21]

Dow Jones Industrial Average Index 8816.46 494.53 -5.31% Open


WHAT HAPPEN TO THE 700 BILLION RESCUE PLAN?


MCLAME VOTED FOR THE PORK AND NOW HE HAS TO EXPLAIN IT TO HIS BASE.


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

Posted by monet767 at 03:31 PM : Oct 15, 2008

Obama voted for it as well, but nobody will make him answer to anything.

[Jade_River]

Ok now that the stock market has crashed from its sugar high it is time to bail out Neiman Marcus, Mercedes Benz, Saks Fifth Avenue, and Hummer. That should make those retail numbers look better. And you don''t even need consumers, or the middle class for that matter. Oh ya who is going to pay those taxes.

[no_slack]

"Stay out the Bushes!!"

[no_slack]

"GOP_WILL_WIN???? WIN WHAT??? A ONE WAY TICKET OUT OF DC?"


Let the door *** hitem where the dog should''ve bitem

[inventagod2]

Why don''t you bigots just say it -

You are afraid of black people...

[maakahill]

MONET767 -

You are extremely proficient with your cut & paste technique. Thanks for your useful input of keeping everyone informed where the Dow stands. I appreciate your efforts to educate us how on uninformed Obama supporters really are.. Keep up your the good work.

Remember "McStupid" spent over 5.5 years as a POW to give you this freedom to speak. Please learn some respect for your elders, even though you may disargee with them. BTW, Obama voted the same way on the bailout.

[no_slack]

"Don''''t let the devil Obama in through the door - he will destroy the American dream."

Bush all ready did that.

[irmcvet97]

Remember "McStupid" spent over 5.5 years as a POW to give you this freedom to speak. Please learn some respect for your elders, even though you may disargee with them. BTW, Obama voted the same way on the bailout.



Posted by maakahill at 04:05 PM : Oct 15, 200

Hey do you think McSame is something special? I spent a YEAR and 26 Days in Combat, lost 15 VERY good friends. There isn''t ONE, not ONE of their Family''s that wouldn''t GLADLY trade places with McSame. Walking into Combat no more qualifies anyone to be President than does anything else. I''ve seem some of the dumbest humans on this planet walk into combat... AND SURVIVE!! Time to cut the garbage and be an AMERICAN! This "Trickle Down" trash the Repigs sold us DOES NOT WORK, HAS NOT WORKED and WILL NOT WORK. Time to terminate it and the Party that brought us the LIE!!

[no_slack]

Hey do you think McSame is something special? I spent a YEAR and 26 Days in Combat, lost 15 VERY good friends. There isn''''t ONE, not ONE of their Family''''s that wouldn''''t GLADLY trade places with McSame. Walking into Combat no more qualifies anyone to be President than does anything else. I''''ve seem some of the dumbest humans on this planet walk into combat... AND SURVIVE!! Time to cut the garbage and be an AMERICAN! This "Trickle Down" trash the Repigs sold us DOES NOT WORK, HAS NOT WORKED and WILL NOT WORK. Time to terminate it and the Party that brought us the LIE!!

Posted by irmcvet97 at 04:09 PM : Oct 15, 2008


Amen Brother!

[irmcvet97]

It went down. But nobody could have forseen this.
Posted by gop_will_win at 03:45 PM : Oct 15, 2008

Yeah? Well one thing is CERTAIN! IF we have a BALANCED BUDGET and A SURPLUS as we did when the Reich took over we''d be a LOT better off that''s for sure... Don''t you think?? I mean taking a BALANCED BUDGET and Surplus and turning it into RECORD Debt... that''s pretty Incompetent my friend. Now add to that LYING us into a NEEDLESS War and who votes FOR that??