Bears are running wild on Wall Street today, with the Dow down as much as 350 points by midday, MarketWatch reports. The Fed’s rescue of AIG seemed to do little to reassure investors, as the financial sector continued to plummet; Morgan Stanley fell as much as 40%, despite a better-than-expected earnings report, and Goldman Sachs fell 23%.
The Nasdaq and S&P each fell 3.3%. The credit market remained the key concern, as corporate borrowing costs rose. “The Fed is trying to provide liquidity as quickly as it can, but there seems to be an endless supply of 'moles' and only one mallet,” said one investor, “The banks aren’t really lending to each other.”