Thursday, January 17, 2008

Bad Day on Wall Street: Dow Down 306 Points

Stocks tumbled Thursday, extending the 2008 selloff on recession worries following comments from Federal Reserve Chairman Ben Bernanke, a big quarterly loss by Merrill Lynch and weak readings on the housing and manufacturing sectors. Bernanke told Congress that the economic outlook has worsened and that lawmakers should enact a fiscal stimulus plan soon....

Bernanke, testifying before the House Budget Committee Thursday, said that the government should act quickly to put together a fiscal stimulus plan to help consumers amid rising recession fears.

He said any plan needs to be put into effect in the next 12 months to be helpful and should be temporary, to avoid the risk of juicing the economy too much beyond the short term and not cause a big jump in the budget deficit.

read the CNN story

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