Update: Markets down 4%, lowest since ’90s

March 2nd, 2009, 7:46 am · 22 Comments · posted by Jan Norman, small-business columnist

Stock market indexes plunged 4% today, closing at their lowest averages in more than a decade as concerns mounted about the world financial system.

The S&P 500, a measure of the nation’s largest companies, closed at 700.87, down 34.27 or 4.66% to end the day at its lowest point since Oct. 30, 1996.

The Dow Jones Industrials fell 299.64 — 4.24% — to close at 6,763.29. The last time the index closed that low was Feb. 6, 1997.

Insurer AIG prompted the selloff after it reported a record $61.7 billion loss in the last three months of last year. The federal government said it will give the company an additional $30 billion in bailout funds in hopes of stabilizing the insurer.

Read the AP story here.

Other economy stories….

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ocobserver says:

March 2, 2009 at 8:15 am

well, until the blatant enabling of the embezzlement of our financial system comes to a screeching halt we are in meltdown mode. the market no longer applauds at the news of corporate bailouts. AIG gets another $30 billion and see how Mr. Market reacts? At last check it was down 184 pts. to under 6900. Broken all supports. the cure is nasty and poltically unpopular. but it’s time to default the debt and to put all the wall street crooks who set the stage for this perfect financial hurricane (Cat 5)in striped suits and behind bars. Until that happens we are on our way to ‘the greater depression’, even bigger than the last one over 70 years ago. All you folks who depend on a pension (private or public) should be very worried about now. no joke.

X-DEM says:

March 2, 2009 at 8:28 am

Throwing good money after bad. Bailing out AIG is another mistake as is bailing out poorly performing corporations like GM and Chrysler. Thanks to high taxes, the job market is going South and without a job or the possibility of losing a job in the near future will not “stimulate” anyone to spend money, much less buy stocks that are tanking.

High taxes are a really bad idea that only Democrats, most of whom never really worked for a living (try plumbing or carpentry) think as a means to raise more money. Call it squeezing blood from a stone.

By the 3rd or 4th QTR 2009, expect the DOW to be around 4500 if not lower. Thanks for the “change” Democrats!

Dudeman says:

March 2, 2009 at 8:35 am

Thanks, Dems, you SUCK! No change here…

retired says:

March 2, 2009 at 8:53 am

ocobserver,
So where is the soup kitchen? Can my two mutts and I move in with you?

March 2, 2009 at 8:54 am

Private capital comprises 2/3′rds of our capital markets. People are hoarding their stash in the mattress. Nobody trusts the system any more and with good reason. If the government continues to expand our debt in the manner exhibited the laws of exponential math ensure a bond default and it will spread quickly throughout the globe since all are economically and financially interdependent. Look to europe. Hungary as asked the other members of the EU for a bailout in their emergency meeting. Germany just flipped them the bone. When your own home in burning down are you going to help your neighbor put out his house fire? Only possible answer is to force the bad debt to default in a systematic, organized manner and to put all the financial crooks (to include government hacks who were complicit in the crisis) in the big house to garner confidence that we are still a country that operates under the basic premise of ‘rule of law’. Otherwise no one will be willing to take their money from the mattress and risk it in the open marketplace.

Outta SoCal... says:

March 2, 2009 at 9:13 am

Obamunism is proving to be a failure as many knew it would be. Honestly, is anyone surprised that the DJ has dropped from 11,300 to below 7,000 since he went ahead in the polls in September 2008? There is ZERO confidence in Wall Street for his policies.

ocvoice says:

March 2, 2009 at 9:40 am

thanks obama and gang

March 2, 2009 at 9:46 am

you cannot make everyone in a ‘free society’ pay for the sins of a few and get away with it. especially when the sinners are rewarded. this can only occur with severe consequences from the masses. i imagine the moneychangers on Wall Street and in D.C. are in panic mode about right now. And with good, good reason.

bobbyc says:

March 2, 2009 at 9:56 am

George W. Bush’s track record as president…

1 -The 9/11 Terror Attacks: (You were warned, but didn’t care!)

2 -Iraq War: (No WMD’s were found, our country went into the largest debt in history, and many good US soldiers died in vain, but that didn’t matter to you one tiny bit!)

3 -Hurricane Katrina: (You could have cared less!)

4 -The US Recession: (What did you care, as long as your Mexican buddies were happy, and the drugs were crossing the border!)

5 -Wall Street Meltdown and Payoff: (Again, what did you care, as long as you and your buddy’s palms were greased).

Why to screw up American beyond repair! If there is an Anti-Christ, it is YOU Mr. Bush!

JiminHayward says:

March 2, 2009 at 10:02 am

You folks are nuts to blame Obama for this. He inherited it from Bush!

I will say I am happy about this though. The market has been way to high for far too long. Time that these professional gamblers get reigned in.

Now I will take my money and invest it. Glad I waited for 10 years to do this!

skeptic says:

March 2, 2009 at 10:13 am

Democrat or Republican…. our government has no idea how to handle this economic collapse, nor do I. We are witnessing the adjustment downward to a lower standard of living in the USA for a majority of people. Retirement is fast becoming a grand illusion. How is your 401K looking? Is your pension safe? Many of us will be working long into our “retirement” years.

ocobserver - good post, we are all in this together.

At this point in time, the outlook is not good. The market and
economy will rebound over time, but to what levels??

imacobru says:

March 2, 2009 at 10:19 am

Lest we forget….AIG is the insurance company for ALL the Congressmen and Senators…now they don’t want their benefits and related plans to fail…however they could give a Sh-t about ours. Good Ol’ Boys taking care of Good Ol’ Boys…. By the way, if you have not noticed yet….That’s Nero over there in the corner fiddiling away, and that bright light and warm feeling is the wWorld burning and collasping around us all…..

Chicken says:

March 2, 2009 at 10:40 am

bobbyc,
You are wrong, the down turn now is not by Bush but by the Obama’s policy, take from riches to poors. How can my hard earned money going to support other laziers. Tell me? I don’t want to expand my business now, because the more I do the more I pay for others. Sorry, I withdraw my money and stop investment and expand my business. I admit that I must layoff few loyalty workers, but I have no choice.

Dina says:

March 2, 2009 at 10:41 am

Our government has sold us to China and Mexico.

Cliff says:

March 2, 2009 at 10:43 am

@skeptic
Great post I agree with your comments.

March 2, 2009 at 11:05 am

You dems and repubs who argue back and forth about who caused the crisis still don’t get it, do ya? you are living under one party government rule. your bickering and fingerpoint just exaccerbates the problem and puts you exactly where they want you. step back for a second and reboot your throught processes. Unite. Contact the Registrar of Voters today and change your party affiliations to ‘independent’. Cleanse yourselves of years of mind control and brainwashing @ (714) 567-7600. Return postage not required.

March 2, 2009 at 11:14 am

wrong skeptic, our government knows how to fix it, they just don’t have the guts or motivation. obama knew exactly what he was doing when he started pushing his welfare bills through the house. he wants to expand government and punish business. it doesn’t take a brain surgeon to figure out how this would affect the economy.

all of you that voted for obama knowing his agenda, were you asleep at the wheel?

Joe says:

March 2, 2009 at 12:53 pm

Thank you George W. Bush for residing over the loosening of financial regulation.

bpsqwerty says:

March 2, 2009 at 1:07 pm

does Obama even know what a 401(k) is? this guy is CLUELESS.

the neophyte has spoken - and he DOES NOT CARE about the middle class (soon to be: what middle class?)

grocer says:

March 2, 2009 at 3:10 pm

I’m going to grow fruits and will start selling them at my street corner…we are entering the Great Depression Part ll.

ocmikej says:

March 2, 2009 at 3:20 pm

Stop blaming the goverment…blame greed..and ultimately yourselves. 200 dollar jeans, expensive cars, heloc, flipping out, ipods,…gimme me a break. People are spending way too much with no money. I mean, do we need a 500 PS3? or a 62 inch plasma, ed hardy fugly junk.
Stop whining people, we are all at fault. We want cheap stuff, so we can save more for our 401K, a bigger house to keep up with the Jone’s. Ultimately, we let the chinese gov financed our lifestyle.

ron paul!

William Walker says:

March 2, 2009 at 7:47 pm

Great post, thank you for your thoughts. I also liked radio Host Kevin Price (Price of Business Show) and what he said at his blog http://www.BizPlusBlog.com.

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