Rocky Road for Wall Street

By: Alexis Christoforous Email
By: Alexis Christoforous Email

August 8, 2011 -

Wall Street will try to bounce back today from its biggest drop in two and a half years.

The Dow plummeted more than 600 points Monday - finishing below $11,000 and triggering a global sell off early this morning.

"I don't want to have my money in the market, you look at the market and everyday it's another 500 points and every day the numbers just keep going lower and lower," says a passerby.

Panic is growing over the nation's teetering economy and the debt crisis in Europe.

Despite those fears and Standard and Poor's recent downgrade of America's credit rating, investors actually pumped money back into US Treasuries Monday.

"If you're looking for a safe home for your cash, many people still think it's the US dollar and US Treasuries," says David Jones, an analyst at IG Investments.

Investors will be looking for a boost when federal reserve officials meet in Washington today. But analysts here on wall street aren't expecting much help.

"They're not going to lower interest rates because they're at zero and they're not going to raise them, that's for sure," says Alan Valdes, a New York Stock Exchange trader.

The Fed could end up reinstating a bond buying program to bolster the economy.

But experts believe the market mayhem will likely continue for some time.
Jack Hough/Associate Editor 1:07
"I think overall in the long term we will see better days and we will be okay, it's just going to be a slog here in the middle," says Jack Hough, and associate editor.

But the longer that slump lasts, the more of a devastating impact it could have on the economy, and the already weak job market.

Alexis Christoforous, CBS News, Wall Street

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  • by conservative democrat on Aug 9, 2011 at 08:10 AM
    let it crash and burn!!!!
  • by conservative democrat on Aug 9, 2011 at 08:00 AM
    now maybe the Republican party can have an agenda other than the tea party, if they don't stop the arguing and fighting, then the rating will drop again!
    • reply
      by Anonymous on Aug 9, 2011 at 09:18 AM in reply to conservative democrat
      the drop had nothing to do with the "tea part" it has all to do with spending you can not spend more then you get. think you can, then try it and see how long you keep you stuff.
    • reply
      by tom on Aug 9, 2011 at 09:41 AM in reply to conservative democrat
      The rating was cut due to the fact borrowing was increased and spending was not cut which is what Obama pushed for. The TEA party wanted less spending and less borrowing. If you would have taken the time to read the S&P report, you would have discovered that our rating was cut due to the Democratic plan passing. S&P would not have cut the rating if the TEA party plan would have been followed. Might I suggest next time do your own research instead of listening to the Democratic party's political finger pointing. TEA party wanted less spending and less debt...... have you ever heard of a country having their credit down graded because of too little debt....THINK ABOUT IT!!!!
      • reply
        by me on Aug 9, 2011 at 12:09 PM in reply to tom
        CD up there is all over this site spreading its troll like qualities. If you look at all its posts you will see it doesn't say anything different and is full of one liners...I've found that folks like "it" are not worth a response because it can only listen, not think for itself. Really, look at it's took it 10 minutes to come up with "let it crash and burn". Now, tell us who wants the economy to crash.
    • reply
      by Ken on Aug 9, 2011 at 12:24 PM in reply to conservative democrat
      Was S&P not the rating agency that gave AAA rating to all the derivitive packages? And who own the S&P? The real tea party was started by Ron Paul in the last election cycle. The tea party express was formed by the Republican Party. When you have a popular political movement the establishment will allways try to take it over to kill it. We better get out of the left right bs and realize it is and has allways been the people vs the banks. Alan Greenspan said this weekend on Meet the Presstitutes (Meet the Press)"technically we will never default because we can allways print money". While this is true the outcome is allways hyperinflation. If you don't know where this leads you might want to study history. Restore the Republic! Ron Paul 2012!
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