Wall Street plunges towards worst month since the Great Depression of the early 1930s

Ian Lyall
UK Daily Mail
Friday, June 27, 2008

Shares plunged on both sides of the Atlantic yesterday because of fears over oil, inflation and the global economy.

In London the FTSE 100 slumped 2.6 per cent, or 147.9 points to 5518.2.

Meanwhile in America, the Dow Jones fell more than 350 points to its lowest level since October 1, 2006.

It is now on course for its worst June performance since the Great Depression of the early 1930s.

The febrile mood on trading floors came amid fears that soaring energy prices will push up inflation and erode consumer spending, dramatically reducing company profits.

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At the same time, Wall Street analysts gave a grim assessment of the prospects of some of the U.S.’s most prominent companies.

General Motors – America’s largest car maker – slumped to a 53-year low, and there were more concerns about the sub-prime exposure of Citigroup, the country’s biggest bank.

Hi-tech firms Oracle, and BlackBerry maker Research in Motion also weighed in with bad news.

At the same time, the price of oil surged to a record $140 a barrel after Libya signalled it may cut output, and OPEC President Chakib Khelil warned prices could hit $170.

The news drove home to investors how much they stand to lose from the fallout of the prolonged housing slump, the credit crisis and the soaring price of oil.

The great fear on Wall Street is that consumers – worried about their dwindling finances – will further curb their spending, sending the economy into even deeper decline.

Full article here.

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2 Responses to “Wall Street plunges towards worst month since the Great Depression of the early 1930s”

1. admin Says:
   June 27th, 2008 at 8:08 am

   test

2. Scott Flanery Says:
   June 30th, 2008 at 10:20 pm

   Wall Street is a joke! It’s a big circle of rich banking interests and your not in it. For example, its like the trunk of a tree! There are many rings within a tree, but the inner rings receive the water first and last. Im sorry to say, but 90% of our population is the outer rings. We only get fed when the inner rings are saturated with wealth. The main media reports how the markets are always doing better and how good their looking. Thats so idiots “75% of U.S. population” can pour more money into their pockets, while they yell “spend,spend,spend”! So you fill your pockets with trinkets, fiat currency, and high-interest debt, giving them first cut currency to invest in FOREIGN countries and currencys! They are blood suckers, have you guys looked around this place? Everyone is getting less and less of the piece if pie, while these big shots are predators looking for your wallets. Save your money buy gold,oil, or anything stable. And get out of debt so these losers cant steal anymore of your hard earned money. We must get rid of the federal reserve or else we will never have a chance 40 years from now to recover from this. We must bring the people responsible for this to justice!