WALL STREET TOOK A TRAGIC TURN TODAY AS STANDARD AND POORS DOWNGRADED GREECE'S DEBT TO JUNK STATUS AND ALSO CUT ITS RATINGS ON THE NATIONAL DEBT OF PORTUGAL. THE DEBT DRAMA UNFOLDING IN EUROPE CAUSED A MINI-PANIC THAT THIS CREDIT CONTAGOIN WILL CONTINUE TO SPREAD ACROSS EUROPE AND MAYBE ELSEWHERE AROUND THE WORLD. AS A RESULT ... INVESTORS SOLD RISKIER ASSETS ... INCLUDING U.S. STOCKS AND PARKED THEIR MONEY IN THE RELATIVE SAFETY OF THE U.S. DOLLAR AND U.S. TREASURY BONDS. THE DOW PLUNGED 213 POINTS ... BACK BELOW 11,000 TO 10,991 WHILE THE S&P AND NASDAQ GOT CLOBBERED.
OIL FELL MORE THAN 2 DOLLARS A BARREL ON FEARS A NEW CREDIT CRISIS COULD SLOW THE WORLD ECONOMY AND DAMPEN DEMAND FOR COMMODITIES ... EXCEPT FOR GOLD WHICH JUMPED TO 1171 DOLLARS .... UP 17 BUCKS ... AS INVESTORS SWAPPED PAPER EUROS FOR THE YELLOW METAL. ALL THIS COMES DESPITE SOLID ECONOMIC NUMBERS HERE AT HOME AND GREAT PROFIT REPORTS FROM CORPORATE AMERICA. AND DESPITE A SERIOUS GRILLING ON CAPITOL HILL ... GOLDMAN SACHS EXECUTIVES MAINTAINED THEY DID NOTHING WRONG DURING THE MORTGAGE CRISIS ... GOLDMAN'S STOCK ... THE ONLY FINANCIAL TO CLOSE HIGHER TODAY. |
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