Stocks Tumble After Government Bailout Of AIG

NEW YORK (AP) - Wall Street has plunged again as investors grow
increasingly fearful about more turmoil in the financial system even after the government's bailout of insurer American International Group Inc.

The market's losses were nearly on pace with those seen in Monday's nosedive and investors sought the safety of hard assets and government debt. Gold, oil and short-term Treasurys soared.

The Federal Reserve is giving a two-year, $85 billion loan to AIG in exchange for a nearly 80 percent stake in the company after it lost billions in the risky business of insuring against bond defaults. But the move has failed to reassure investors.

The Dow Jones industrials ended down 447 points at the 10,612 level.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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  • by Anonymous on Sep 20, 2008 at 11:31 AM
    Who needs energy independence when we can pay for these wizards.
  • by Anonymous on Sep 20, 2008 at 08:03 AM
    Bush is the one who said yes to giveing AIG all that money. And if I am right he is a GOP no a Democratic.
  • by Jack Location: Pike County on Sep 20, 2008 at 07:57 AM
    You are so right char62. Let's see them bail us out. Give us a break like they have big business. It'll never happen because there's no money made in helping the poor and middle class, no kick-back. We've been begging for help for years and nobody heard us, but let these guys cry because they can't manage their business and they get trillions of dollars to help them, if it's there for them then it should be there for us.
  • by Stuart Location: Margate, FL on Sep 19, 2008 at 07:59 PM
    You have to be "NUTS" or have "GUTS" to be invested in this market, especially this week. I went from horror to utter amazement when the stock I bought in Washington Mutual (WM) went from $1.50 a share on Tuesday to close at $4.25 a share on Friday. I don't think I will ever take a risk like that again. I told someone earlier that day, that I would be living "EITHER IN THE STREET OR IN A SUITE."
  • by Anonymous on Sep 19, 2008 at 04:09 PM
    Hey I'm stupid. You can bail me out for a couple of billion.
  • by clay2 Location: mt sterling on Sep 19, 2008 at 01:29 PM
    The solution is corporate welfare and elect more repug trash
  • by Jerry Location: Right here on Sep 19, 2008 at 10:33 AM
    This is old news; the stocks have been up two days in a row now.
  • by Early Cuyler Location: Squidville on Sep 18, 2008 at 07:51 AM
    Truly the Librel/Democratic way in America: Get the Government to bail you out! I have known for years that this day of reckoning was coming. People were not making near enough money to have a new $200,000 home,2 new cars, kids, $300 video games.....blah,blah,blah. Because of the Librel/Democratic mantra of redistributing the wealth we are all going to suffer. If you can't afford it then you are going to have to save to get it. Credit always come due someday and it looks like for a whole bunch of people it's now SOMEDAY! Vote Republican and end Social Welfare!
  • by sonya Location: warbranch,ky on Sep 18, 2008 at 01:40 AM
    why does the wall street have so much inpack here in ky? does that mean we are in trouble allso? i surel thank not but i know better.
  • by Anonymous on Sep 17, 2008 at 03:47 PM
    My SUV gets 8 MPG. I'm somebody!!! Who cares about the rest of you.
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