The Dow Jones industrial average plunged below
7,000 today for the first time in more than 11 years as investors
grow even more pessimistic about the health of banks, and the
economy.
A staggering $61.7 billion in quarterly losses at insurer
American International Group Inc. heightened fears about the health of the nation's financial system.
7,000 today for the first time in more than 11 years as investors
grow even more pessimistic about the health of banks, and the
economy.
A staggering $61.7 billion in quarterly losses at insurer
American International Group Inc. heightened fears about the health of the nation's financial system.
The worries pushed the Dow below 7,000 for the first time
since Oct. 28, 1997 and then below 6,900 for the first time since
May 1, 1997. The credit crisis and recession have now slashed half
the average's value since it hit a record high over 14,000 in
October 2007.
since Oct. 28, 1997 and then below 6,900 for the first time since
May 1, 1997. The credit crisis and recession have now slashed half
the average's value since it hit a record high over 14,000 in
October 2007.
Investors are fleeing financials after the government said it
would give AIG another $30 billion in loans, besides the $150
billion it has already injected into the company. Investors are
worried about European financial companies, too. HSBC PLC, Europe's
largest bank by market value, reported a 70 percent drop in 2008
earnings and said it needs to raise $17.7 billion and cut 6,100
jobs.
would give AIG another $30 billion in loans, besides the $150
billion it has already injected into the company. Investors are
worried about European financial companies, too. HSBC PLC, Europe's
largest bank by market value, reported a 70 percent drop in 2008
earnings and said it needs to raise $17.7 billion and cut 6,100
jobs.
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