Stocks Plunge on Auto News

Madoff doesn't help either
By Kevin Spak,  Newser Staff
Posted Dec 12, 2008 8:45 AM CST
Traders work on the floor of the New York Stock Exchange Monday, Dec. 8, 2008.   (AP Photo/Richard Drew)
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(Newser) – Stocks went sky-diving this morning in the wake of the Senate’s scuttling of the auto bailout and the massive fraud case against a former NASDAQ chairman. The Dow dropped 200 points, accompanied by 2.5% and 1.8% drops in the S&P and Nasdaq, respectively. The auto news rippled through the market, sending US Steel down 4% and parts maker Lear more than 27%, the Wall Street Journal reports.

“Investors have been betrayed again by US politicians,” said one Tokyo money manager. “Even with the knowledge that we are in the midst of a crisis, they were unable to come to an agreement and investors have decided to abandon ship.” Compounding the negative vibes was the arrest of Bernard Madoff, a respected trader charged with crafting a $50 billion Ponzi scheme.