Dow Jones Dropped The Most in Seven Years

Dow Jones 504 pointsLast time the Dow Jones Industrial Average Index lost more 500 points in a single day was almost 7 years ago on September 17, 2001, shortly after the terrorist attack that brought down the World Trade Center.

Today, the stock market was hammered by what happened not far away from where the towers used to stand: on the Wall Street, all the big financial names: Lehman Brothers (LEH), Merrill Lynch (MER), Bank of America (BOA), American International Group (AIG), Washington Mutual (WM). Trouble, trouble everywhere, even the $7+ plunge of oil price could stop the bloodshed. Only the closing bell did.

Will tomorrow be better?

Nobody knows. As long as the fate of AIG still hang in the balance (right now not many people are talking about WaMu), don’t expect any calm in the stock market and stocks will remain under pressure until there are improvements in the housing market.

For you and me, ING Direct has a piece of advice during this turbulent time:

The best course of action … is to be disciplined: avoid splurging; identify and cut out unnecessary expenses and save for what’s essential; and hedge against those tough times. We can all benefit by developing good spending habits: confront – and cut up – credit cards; use your home as a savings vehicle – not as an ATM; and establish and contribute regularly to an IRA or 401(k).

BTW, today’s 504-point loss of the Dow is the sixth largest in the index’s history.

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