The dow dived again Monday, almost as if investors didn’t know that last week the president signed the $700 billion bailout plan. It would seem that investors are even more fearful that the $700 billion bailout plan will not fix the financial crisis fast enough if at all. The fear has actually spread on a world wide scale. Many believe a global recession is imminent if the U.S. markets are to be the cause for stock shockwaves in Europe and Asia.
Investors could have thought that it would be a quick fix, as the president illustrated to us in comments he made Monday. “It’s going to take awhile to restore confidence in the financial system,” Bush said. Well if no one believed him all they had to do was watch the Dow Jones Industrial Average throughout the day Monday. Many analysts thought that there was a chance that we’d see an all-time low as the dow dropped as much as 800 points hours before the close of the business day. The good news is that it recovered and closed with a loss of 370. The bad news is that the dow fell below 10,000 for the first time in four years.
We can only wait and see what happens tomorrow, but as for the near future we have to speculate. New polls suggest that the highest number of people ever say that the economy is in bad shape, and three out of four believe that it’s getting worse. So as the general public loses their confidence the investors follow. In the post $700 billion bailout America, we can begin to figure out what happened. But Wall Street business isn’t the only place being affected. Many from the auto industry to the clothing industry are reporting new losses. And all of this has a reach that stretches around the world.
Not for nothin’, this crisis seemed to be contained in the U.S., but it looks like most of the world tends to follow America’s example, and there’s no difference here. The next president will have his work cut out for him. Not only will he have to repair our financial crisis, but he may also have to repair strained relations with countrys who may start to feel that we dragged them down in this mess.
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