U.S. Stocks Plunge Most in Year as ’Panic Selling’ Grips Market

5/8/2010

U.S. stocks tumbled the most in a year on concern that Europe’s debt crisis will halt the global recovery. The selloff erased $1.25 trillion in market value as the Dow Jones Industrial Average fell almost 1,000 points, its biggest intraday loss since 1987, before paring losses. The Dow average ended the session down 347.8 points, or 3.2 percent, at 10,520.32 at the 4 p.m. close of trading in New York. The Standard & Poor’s 500 Index fell as much as 8.6 percent, its biggest plunge since December 2008, before trimming declines to end at 1,128.15, down 3.2 percent. It was the biggest drop since April 20, 2009, for both measures.

Problems with Greek debt are about to spread to other countries and could infect the US unless the nation tackles its own mounting problems, Pimco's Mohamed El-Erian told CNBC. About an hour or so after El-Erian spoke, global stocks sold off sharply with major US averages shedding more than 3 percent.

The cost of insuring against losses on European bank bonds soared to a record, surpassing levels triggered by the collapse of Lehman Brothers Holdings Inc., as the sovereign debt crisis deepened. European policy makers are under mounting pressure from investors and foreign officials to broaden their response to the Greek fiscal crisis after a 110 billion euro ($140 billion) bailout package failed to ease concerns.

Heated pools, ocean views and media rooms are not what most people would expect to find in a foreclosed property, but more high-end homes—priced over a million dollars—have been falling into the hands of banks this year.
Foreclosures of homes worth over $1 million began increasing at the end of 2009, according to exclusive data provided by foreclosure tracking website RealtyTrac. Foreclosures reached a high in February 2010, the last month data is available, when 4,169 homes were somewhere in the foreclosure process; either having received a foreclosure notice, had an auction scheduled or the lender took ownership of the property. That’s a 121 percent increase from a year ago.

Stack of Stuff:

Bank Risk Soars to Record, Default Swaps Overtake Lehman Crisis

Market Plunge Has Political Statement Written All Over It

Greek Debt Crisis On Verge Of 'Going Global': Pimco's El-Erian

The day that will change market structure

U.S. Stocks Plunge Most in Year as ’Panic Selling’ Grips Market

Dow Ends Down 350; VIX Tops 34

High-End Homeowners Falling Into Foreclosure Trap

Mean Street: Crash — The Machines Are in Control Now

Was Crash Precipitated by Stop Loss Triggers?

European Deficits and Dept vs. United States

How a Market Crashes