Dow Jones industrial average closes down 451 points or 4% at around 10610, another black day for Wall Street or should I say RED.
AIG bailout didn’t do the job, Fed’s lending AIG $85 billions could get the investors to feel secured a against another financial disaster, as this loan will not rescue AIG, it will just give the insurance giant time to sell assets in an appropriate price, which is expected to be $150 billions.
The fears didn’t only hit the Dow Jones Index, NASDAQ Composite fell 104 points or 4.9%, S&P 500 declined 47 points or 3.9%.
Apparently no company was out of doubt, merger speculations has sent Morgan Stanley down 40%, while Goldman Sachs declined 24.4%.
All this chaos and uncertainty reminded the investors of their all time safe haven, Gold. Prices of gold futures soared $70 or 9% today to $850, the biggest gain in one day since 1980, while oil ended up $6 at $97, this was of course accompanied with a Dollar decline across the board.