Tuesday, August 2, 2011

Whoooooooooops

Stock market tumbles again despite avoidance of U.S. default:
The Dow Jones industrial average slumped more than 265 points Tuesday as mounting concerns about the fragility of the U.S. economy weighed heavily on Wall Street. It was the Dow's eighth straight daily loss, its worst string since the depths of the global financial crisis in 2008.

Though relieved at Washington's ability to forge an eleventh-hour debt-ceiling plan that averted a feared default, investors are spooked by the notion that the government cutbacks called for in the debt plan could further weaken an already torpid economy.

"Investors are looking past the budget situation and realizing this is an austerity plan," said Jack Ablin, chief investment officer of Harris Private Bank in Chicago. "We have an economy that's struggling to stay afloat and we don't have the ammunition to keep prodding it forward."
Emphasis mine.