X

Stagflation Jitters Sink Stocks

Greenspan: 50-50 chance of recession
By Jonas Oransky,  Newser Staff
Posted Dec 17, 2007 3:29 PM CST
Stagflation Jitters Sink Stocks
Fed Cuts Interest Rate For Third Time   (Getty Images (by Event) Individuals)

(Newser) – The markets resumed last week’s downward spiral today, with the Dow diving 172.65 to 13,167.20 despite typically buoying news of major deals. The Nasdaq slid 61.28 to 2,574.46 and the S&P closed at 1,445.90, down 22.05. Alan Greenspan said he foresees a 50-50 chance of recession and warned of stagflation, the Journal reports.

story continues below

Said one concerned strategist, “The Fed is neutered. The market is left in this helpless position.” The bad news on the day was a warning from Moody’s that subprime losses might lead to lowered bond-insurer credit ratings. Meanwhile, several big deals were revealed, including a $1.4 billion cash infusion from Goldman Sachs for real estate developer Related Cos. (Read more Dow Jones stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X