Stock Market

Tyra Monger
11/20/08
Business Economics
Current Event

This week I read about the US shares falling to a five year low. It was written on Wednesday November 19, 2008. The author is unknown. Wall Street dropped more than 5% on Wednesday to its lowest level in over five years on rising economic worries. After 61 years the consumer price it dropped to the worst, and it is predicted that the economic growth will soon cease. ‘Economists say that this rapid fall in consumer prices has given the US central bank the room it needs to cut interest rates to battle the economic slump’ (Cite BBC News) "It's certainly the Fed confirming what the market has realized - that the recession is here," said Bruce Zaro, of Delta Global Advisors in Boston. (Cite BBC News) Dow Jones averaged at 427 points to get 7,997.28, below the level for the first time since 2003. For three months now gasoline prices have been falling. This is a good thing. Republicans at the White House are opposed to aid for the car industry especially after the $700bn bank bailout. ‘Citigroup shares tumbled 23% to a new 13-year low. This week the firm announced it was shedding 53,000 more jobs. Its shares have lost 53% of their value in November.’ (Cite BBC News)

I think that we are in a big hole and to get out we are going to have to work really hard. After loaning 700 billion dollars to get that much money back is difficult. Since we are in so much debt to China. They will control. Losing so many jobs will put millions of people out everywhere.