New York, NY – Stocks slumped Thursday, building on the 2008 selloff on recession worries following comments from Federal Reserve Chairman Ben Bernanke, and the corporate and economic news
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Bernanke told Congress that the economic outlook has worsened and that lawmakers should enact a fiscal stimulus plan soon. Also weighing: Merrill Lynch’s big quarterly loss, more problems for the housing sector and a sharp drop in the Philly Fed – a key regional manufacturing reading.
The Dow Jones industrial average lost 306 points to close at 12,159.
Iam a stock trader by profession. The main problem is that banks wer allowed to lend money to people who obviously could not pay back. Many house prices were inflated.
Now ,these sub prime mtgs. are coming home to roost.
What now the problem is that credit is is hard to come back, and therefore real companies can not expand.If there is a contraction, every person in America will suffer, not just the banks.People won’t hire because of lack of credit.
Many Yeshivos will be starved, and yes, being a Rebbi is a job.
I have lost money but over the years I am ahead.(This is my Parnossa).
Many Frum people don’t get how bad this is.It could spread to charity to the poor,money to Meshulachim, and somehow they will blame us.
In a way it is a big fault of Ben Bernake.
You should all Daven the economy should not contract,you don’t realize how bad the situation is.
Comment # 3 is correct, the market does indeed have to trade on its value and move off the inflated bubble, that being said, the situation is directly analogues to our personal spending, how often do we see individuals spending/trading well above what they can truly afford.
“hope the new president to bring us a healthy new economy”
Why is this the president’s fault that the banks were Stupid?
Time for the market to trade on its true value, and not on spending that was pulled out of a home equity, which was inflated through predatory lending. The US was living on a dream the past few years, unfortunately I think we are heading into a recession, if are not in one already, the good new is once this mess is over, I hope the new president to bring us a healthy new economy, but my outlook for 2008 is no good, we just have let this mess pass through.
time to get a job.
Many Yeshivos and Kollel’s will be effected because of this. I know my son did not get his paycheck this month from Kollel.