Bonzer Wolf™ (bonzerwolf) wrote,
Bonzer Wolf™

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Dow Closes at Lowest in Over 5 Years

The Dow Jones Industrial Average tumbled more than 400 points, or 5 percent, closing below 8,000. The last time the Dow ended below 8,000 was in March 2003.

The S&P 500 index shed more than 6 percent, while the Nasdaq lost more than 6.5 percent.

Shares of both General Motors [GM  2.79    -0.30  (-9.71%)   ] and Ford [F  1.26    -0.42  (-25%)   ] dropped more than 10 percent. In the past 12 months, GM shares have lost more than 90 percent of their value and Ford is down more than 80 percent.  Citigroup [C  6.40    -1.96  (-23.46%)   ] tested a new low, hitting $7.75 a share before rebounding above $8, as investors continued to punish the stock amid concerns that the 52,000 job cuts announced this week indicate worse management than previously thought.  Only ten stocks on the S&P 500 have gained value since September 15, 2008.

Throwing Trillions of  U.S. Tax dollars at the current economic problems is not helping. In fact, the more the government interferes the worst the recession will become.  A free and competitive market allocates resources in the most efficient manner. Each person has the right to offer goods and services to others on the free market. The only proper role of government in the economic realm is to protect property rights, adjudicate disputes, and provide a legal framework in which voluntary trade is protected. All efforts by government to redistribute wealth, or to control or manage trade, are improper in a free society.

Tags: economy, libertarian, politics, recession

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