Investors are refraining from buying stocks because they are uncertain about how the administration of President Barack Obama will handle the worst financial crisis since the Great Depression. There is no confidence by investors that the bloated stimulus bill will do anything for the economy in any reasonable time frame. Investors were hoping for a tax cut, but they are now expecting tax increases instead. When you add the talk of nationalizing banks to this witches brew of economic problems, the Dow may see 6000 before the slide stops.
LEAD: Dow hits lowest closing since May 1997 on deeper economic concern
Feb 23 05:47 PM US/Eastern
(AP) - NEW YORK, Feb. 23 (
New York stocks tumbled Monday with the Dow Jones index ending at its lowest level in 11 years and nine months on increased pessimism about the future of the U.S. economy.
The Dow Jones Industrial Average, which fell 100.28 points and hit its lowest closing since October 2002 last Friday, lost an additional 250.89 points to 7,114.78, its lowest close since May 1997.
The Dow fell three trading days in a row, losing about 440 points during the period.
The tech-heavy Nasdaq Composite Index, which fell 1.59 points Friday, lost another 53.51 points to 1,387.72. (excerpt) read more at breitbart.com