What’s new? Wall Street has gone through some major turbulence this past year not knowing if the market will be fine or if there will be a crisis, all due to housing subprime issues late last year and worries that increased higher this past spring.
Wall Street plunged again after a French Bank said it was freezing three funds that invested in U.S. subprime mortgages. The Dow Jones has responded to this frenzy of housing worries by falling more than 380 points today.
This only marks the beginning of the increased worries of U.S. market credit problems and how it’s spreading its impact into many sectors, not just housing. The stock market has gotten cold feet because now many individuals, investors and institutions are having trouble finding money due to tighter credit concerns and bad mortgages.
It’s gotten so bad, that the European Central Bank provided the biggest money injection ever, $130 billion dollars into money markets at a low rate of 4 percent. The Federal Reserve added a large-than-normal amount of 24 billion into the U.S. banking system.
Concerns have spilled into Wall Street, even though these worries have been around for quite sometime and have only begun to unravel. Retailers are reporting small sales, only proving more that the housing market is now affecting the consumers.