Capitol Hill Blue Forums Political Issues Finance, the economy & Economics How will the financial crisis develop?

WASHINGTON - Calm gave way to fear in financial markets Thursday, turning a relatively steady day into a rout that pushed the Dow Jones industrials below 9,000 for the first time in five years.
Investors, who had begun the day somewhat optimistic that the government was taking extraordinary steps to contain the financial crisis, turned gloomy under an onslaught of worries about the economy and corporations.
On the anniversary of its closing high, the Dow shed more than seven per cent, or almost 700 points, to 8579.19. The Dow has lost 5,585 points, or 39 per cent, since closing at 14,198 a year ago. The S&P 500, which also fell more than seven per cent to 909.92, is off 655 points, or 42 per cent, since recording its high of 1,565.15 a year ago.