Dow drops 512 points
August 4th, 2011
04:12 PM ET

Dow drops 512 points

Stocks plunged Thursday in their single worst day since the 2008 financial crisis.

The Dow tumbled 512 points - its ninth deepest point drop ever - as fear about the global economy spooked investors.

"The conventional wisdom on Wall Street was that the economy was growing - that the worst was behind us," said Peter Schiff, president of Euro Pacific Capital. "Now what people are realizing is the stimulus didn't work, and we may be headed back to recession."

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Filed under: Business • Economy
soundoff (31 Responses)
  1. yada


    August 4, 2011 at 4:22 pm | Report abuse |
    • michaelfury

      August 5, 2011 at 7:30 am | Report abuse |
  2. Penny Thomas

    You can thank the incompetence of our congress for this drop. We, the people, have no confidence in our government after the debacle of the debt ceiling debate.

    August 4, 2011 at 4:24 pm | Report abuse |
  3. Curious

    Does this mean a buyers market? Mayyyyybe.

    August 4, 2011 at 5:01 pm | Report abuse |
  4. Curious

    Someone quoted as saying "the stimulus didn't work". That and global fears would debunk the theory that Congress is responsible.

    August 4, 2011 at 5:04 pm | Report abuse |
  5. Troubled

    Thanks, Tea Party Republicans! What did you expect. If you had just come to a compromise immediately, the heated debate would not have frightened everyone that the U.S. might default and we should all pull in our horns!

    August 4, 2011 at 5:13 pm | Report abuse |
  6. Ancient Texan

    The stimulus and all the unemployment extensions were both a colossial waste of money. When the benefits finally expire, unemployment will slowly begin to drop. The confidence of the people has dropped and everyone is waiting for the shoe to drop.

    August 4, 2011 at 5:19 pm | Report abuse |
    • George Patton

      You forgot to mention here that all these useless and unnecessary wars along with all the excessive and needless military spending is also a colossal waste of money, Anciet Texan. Even more tragic is the fact that a lot of people are needlessly dying in these useless wars!

      August 4, 2011 at 5:44 pm | Report abuse |
  7. George Patton

    It appears that Former Soviet Primier Mikhail Gorbachev is right after all. Capitalism is but an illusion!!!

    August 4, 2011 at 5:47 pm | Report abuse |
  8. Some Dumb Voter

    Well when you don't address outsourcing and the real reasons for lost tax revenue then nothing will fix consumer spending or tax revenue from the lost wages. I'm just a dumb voter, so what do I know? The 2 party system is a sham and we need a 3rd primary to get some new ideas into Washington.

    August 4, 2011 at 6:12 pm | Report abuse |
  9. Putin

    @George Patton: Capitalism or Communism would work just fine if you kept greedy snakes out of the equation.. Good luck with your communist crusade though. Russia is starting to thrive as is China and it's because they have embraced the idea that capitalism has an upside.

    August 4, 2011 at 6:14 pm | Report abuse |
  10. saywhat

    @ George Patton

    Agree with what you say about tax dollars wasted on wars & excessive military spending. Leon Panetta is already squirming about proposed cuts in the debt deal. Using the good old weapon of fear & phobia to get us to give the Military Industrial Complex more from our pockets as we the small fry watch in horror our investments wiped out.
    Tomorrow the all important unemployment report comes out and I do not see any good coming out of that, quite the contrary.
    The way capitalism has been abused in this country people may be right in getting disillusioned , seeing what the future augurs for our financial & fiscal health.
    Russia & China both wringing their hands in anticipation as we & our equally idiotic allies in Europe suffer the consequences of our military interventions every whichway, globally displaced from our vantage points of influence.
    Just hope tomorrow is no worse.

    August 4, 2011 at 6:43 pm | Report abuse |
  11. CSnSC

    I sold all my stocks and bought pre-printed cardboard 'will work for food' signs.

    August 4, 2011 at 6:44 pm | Report abuse |
  12. The Lone Okie

    Irratiomal exuberance. It can't go up forever. Just retire later, while they cut SSI.. Food Stamps are at a all time high. Where are the jobs? We got the tax and spending cuts, They passed right to worj, jobs should be oveflowing.

    August 4, 2011 at 6:48 pm | Report abuse |
  13. Bull Halsey

    All communists need to be taken out and shot.

    August 4, 2011 at 7:15 pm | Report abuse |
  14. good

    This must happen! people worry about nothing! cant wait for the bottom then listen to them whine!

    August 4, 2011 at 7:22 pm | Report abuse |
  15. The Lone Okie

    Keep your money where it is, you'll lose momey in the short term, but it will go back up. Tea Party needs to ran out of town....

    August 4, 2011 at 7:41 pm | Report abuse |
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