Stocks tumble as Street worries about financials
Some investors moved out of longer-term Treasury bonds, which don't draw as much demand as shorter-term debt in times of fear. The yield on the 10-year note rose to 3.51 percent from 3.45 percent late Monday.
Investors are still hoping to see other moves from the Fed to boost confidence. Australia's central bank lowered interest rates by the largest amount since 1992 in a surprise move, and that reignited hopes that others, including the Fed and European Central Bank, might follow suit.
Though not giving the market a rate cut, the Fed has taken other steps to help unclog the credit markets. On Tuesday, policymakers provided more details about when it will make $900 billion in short-term loans available to squeezed banks.
The loans are made available to banks through auctions. The Fed, in coordination with other countries' central banks engaged in similar efforts, laid out dates that it will conduct the auctions through the rest of this year.
But write-downs of bad debt at Bank of America are a reminder to investors that troubles within the financial sector remain, according to Kim Caughey, equity research analyst at Fort Pitt Capital Group.
"I think we have weeks of volatility ahead of us," she said. "We're not overly optimistic but we're not indulging in doom and gloom either."
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Member Comments
Posted By: Nowforthetruth @ 10/07/2008 5:06:09 PM
Comment: ACORN Vegas Office Raided in Voter Fraud Investigation
ACORN's Las Vegas headquarters has been raided by Nevada authorities looking for evidence of voter fraud.
http://www.comcast.net/articles/news-politics/20081007/Voter.Fraud.Probe/
Posted By: Nowforthetruth @ 10/07/2008 3:42:57 PM
Comment: Time we started to talk about Biden's long standing ties to the credit card industry lobby.
http://redtape.msnbc.com/2008/10/how-credit-card.html
Posted By: Nowforthetruth @ 10/06/2008 12:04:25 PM
Comment: The link below contains a purported list of the top 25 in Congress who got contributions from the folks at Fannie and Freddie. Obama is listed third, after Dodd and Kerry, even though Obama is just a junior Senator. Obama is followed next by Clinton. Barney Frank and Nancy Pelosi are on the list as well.
http://www.investors.com/editorial/IBDArticles.asp?artsec=16&artnum=1&issue=20080918
For an interesting article purporting to detail the House Financial Services Committee Chairs long history with Fannie Mae, See http://www.businessandmedia.org/printer/2008/20080924145932.aspx
"House Financial Services Committee Chair promoted GSEs while former 'spouse' was Fannie Mae executive."
Where it the article on Biden's ties to the credit card industry and its lobby?