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%.