The Dow Jones industrial average .DJI fell 297.81 points, or 3.79 percent, to 7,552.60. The Standard & Poor's 500 Index .SPX gave up 37.67 points, or 4.56 percent, at 789.17. The Nasdaq Composite Index .IXIC lost 63.70 points, or 4.15 percent, to 1,470.66.And, not a minute too soon, the President signed the American Recovery and Reinvestment Act into law today in Denver.
Wall Street's slide pulled the S&P 500 and Dow to their lowest levels since November 20, when stocks hit 11-year lows. Just before the end of the session, the Dow briefly broke through its bear market closing low that was hit on November 20.
The day's losses brought the Dow down 13.9 percent since the start of the year, while the S&P 500 is down 12.6 percent and the Nasdaq has fallen 6.7 percent.
On the way to Denver, White House Press Secretary did a "gaggle" with reporters on Air Force One. (A "gaggle" is D.C. media terms, it's basically a mini-press briefing, which is on-the-record but usually no video.) The White House sends out a transcript. Gibbs wouldn't rule out another stimulus:
Mr. Gibbs, speaking to reporters aboard Air Force One on the way to Denver, said, “I think the president is going to do what’s necessary to grow this economy.” While “there are no particular plans at this point for a second stimulus package,” he added, “I wouldn’t foreclose it.”Good. If we need it, Obama should do it. My personal economic guru, Paul Krugman, has been calling for a larger stimulus package all along. Today, Krugman warns the entire country is heading the way of California's economic train wreck:
Years of neglect, followed by economic disaster — and with all reasonable responses blocked by a fanatical, irrational minority.Obama has to prevent that. Obama knows that. The Republicans will do everything they can to make Obama fail (as instructed by their leader, Rush Limbaugh, who wants Obama and the stimulus to fail.) So, it's good to know another stimulus is a possibility.
This could be America next.
