Bernanke Can't Rally Markets

Dow Jones drops another 3% as economic data puts black cloud over Wall Street
By Jim O'Neill,  Newser User
Posted Jan 18, 2008 4:00 AM CST
Federal Reserve Board Chairman Ben Bernanke prepares to discuss the near-term economic outlook while testifying on Capitol Hill in Washington, Thursday, Jan. 17, 2008, before the House Budget Committee....   (Associated Press)
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(Newser) – Signs the housing market black hole was worsening and pulling down the rest of the economy spurred the DJIA to slide another 3% yesterday as investors decided a federal rescue plan was too late to help, reports the New York Times. Even reassuring words from Fed Chair Ben Bernanke that the economy was “extraordinarily resilient,” did little to ease concerns.

President Bush outlined his proposal, likely to include $100 billion in taxpayer rebates and  business deductions, reaching out to Democratic leadership, too. But new data showed housing starts at their lowest level in 16 years and pointed to a worsening manufacturing slowdown. Through it all, the markets continued to roil, bringing the year’s Dow Jones loss to 9.2%.