Stocks tumbled and bonds rallied Monday on revived worries about the threat of the credit and mortgage market crisis on the broad economy.The American people are feeling much less financially stable lately and with good reason. All their major investments are worth less and seem to moving in the wrong direction. The wealth factor is a strong determinant of whether or not to spend and with the wealth factor declining for nearly everyone, recession becomes a self fulfilling prophecy.
The Dow Jones industrial average lost 240 points, or 1.8 percent, according to early tallies. The S&P 500 index lost 2.3 percent and fell into negative territory for the year. The Nasdaq composite fell 2.1 percent.
This is the result of horrible economic policy coming home to roost. It is time to get the grown ups back into government. I feel sorry for the next President. The mess being left behind will be monumental.