Wall Street Worries About American Economy

By: Jay Dow Email
By: Jay Dow Email

August 5, 2011 -

Wall Street is bracing for another rocky day following its biggest sell off since the financial crisis. All eyes will be on the Labor Department's latest jobs report when it gets released this morning but will it offer any comfort?

Today's government report isn't expected to calm jittery investors.

Economists predict employers added only 75,000 jobs last month. Unemployment is expected to hold steady at nine-point-two percent.

It's the last thing Wall Street wants to hear.

Stocks tanked Thursday over fears about America's shaky economy and the debt crisis in Europe.

The Dow Jones fell a whopping 513 points, the biggest loss since the recession began.

The Nasdaq dropped more than five percent tumbling 137 points.

"Whether it's slipped into a recession that it's actually contracting, we just don't know but the economy is behaving very badly and it's right at the cusp," says Peter Morici, an economist at the University of Maryland.

Officials from the federal reserve plan to meet next Tuesday to review the latest unemployment report. But they're not expected to announce any new measures to boost job creation or the economy

"I definitely didn't picture myself in this situation," says Kristina Puga, an unemployed worker.

Kristina Puga got her graduate degree in journalism about a year ago and has been unemployed ever since.

If things get much worse, she may have to look outside her chosen field.

"Once my unemployment benefits are up, I'm forced to waitress or bartend or something like that," Puga says.

Kristina isn't the only American worried about the future.

According to a new CBS News/New York Times Poll, 86 percent of the public think the economy is in bad shape. And only 22 percent believe the government's new debt deal will make things any better.

Jay Dow, CBS News, Washington.


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