So much for the see-saw....Markets Panic

Stocks Enter a 'Correction'

The Dow industrials tumbled 237.44, or 1.8%, to 12743.44 after trading up and down throughout the morning as fears of a credit squeeze and economic downturn pushed the industrials into a "correction," down 10% from their October peak of 14164.53. The yield on the 10-year Treasury note sank well below 4%, in a sign of a flight to safety. Spreads on junk bonds are higher than they were during the August credit crisis. Will we see a quick rebound tomorrow, as has been the pattern after days of panic so far this year? It's probably a sign of rough seas ahead if the markets don't recover in the next few days...Stay tuned.