Will it be Dow to go next?

@sivanj (1263)
India
September 18, 2008 2:20am CST
In the recent financial crisis in US even the government's intervention to bail out AIG did not bring confidence in the investors mind as The Dow Jones industrial average lost 450 points today. About $700 billion in investments vanished. Whats to happen next?
1 response
@xParanoiax (6987)
• United States
18 Sep 08
That's anyone's best guess, really...there's a couple things sitting on the back-burner that might contribute to further progression towards unpleasant, bad events in the economy. Most obviously, there's gas prices...which're experiencing something of a conundrum, having risen while oil's gone down. Mostly, we're waiting for damage reports from the last two hurricanes for oil, and gas stations are experiencing shortages even though many of their prices are insane (scattered reports of over $5) because of panic buying...which increases the demand, which feeds into the conundrum of why oil is going down, though undoubtably ties into why gas prices are so high (ignoring gouging, other criminal activities/corruption). If the news about the damage is particularly bad, gas prices could continue to rise...which will put further stress on the already stressed out country. Even the media are scared now, and when they're scared...the rest of us gotta feel concerned too. The rest is that there's several other banks, big and small which could possibly fail as well. Also the FDIC says they're running low on cash...and they can continue printing money, but since that decreases the value on our currency -- that could make the gas prices thing much worse. Meanwhile, unemployment is going up, the housing crisis continues... It all feeds into itself. Even the government's now acknowledging that what they're facing, or at least what we're needing, is a complete overhaul of the economy...which would take more time than this current administration has. And you know time's never on our side in a crisis. So I expect to see the stock market to continue to suffer. And who knows where we'll be by the end of this.