By Kelly O'Connell Reporter
News 3 On Your Side
It was a wild ride on Wall Street. News 3 On Your Side
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Stumble It!After overseas markets headed south, the Dow tumbled as much as 800 points before cutting its losses in late trading.
It was the first time in four years that the Dow Jones Industrial Average dropped below the 10-thousand mark.
The sell-off followed big declines in Asian and European markets. The credit crisis is now global, leaving banks around the world starved for cash.
“The speed with which it is happening is just so phenomenal. That is what is scaring people,” says one trader.
At the close, the Dow was down about 370 points but earlier in the day, it felt like panic as the number dropped by 700, then 800 points.
Traders look back at the collapse of Lehman Brothers as a turning point for this market. The investment bank filed for bankruptcy three weeks ago, triggering panic in the financial world. Today the company's top executive was called to Capitol Hill to face angry lawmakers.
“I feel horrible about what has happened to the company and its effects on so many,” says Lehman Brothers CEO Richard Fuld.
CEO Richard Fuld called the bank's failure a tragedy. But company documents show in the final days before going bankrupt, Lehman approved paying millions of dollars to departing executives.
“In other words, even as Mr. Fuld was pleading with Secretary Paulson for a federal rescue, Lehman continued to squander millions on executive compensation,” says Rep. Henry Waxman, of California.
The government's 700-billion dollar bailout package is designed to save other banks from Lehman's fate. No money is changing hands yet. The administration is working out details on how to divide it up. But it has chosen a former investment banker to head the program.
Despite the numbers, experts say do not panic.
Don’t sell anything right now because it is a guaranteed loss.
The best thing to do is wait for things to pick up before making a decision.
If you are a credit card holder, things may be changing as well.
Your credit line may be less and your interest rates could be going up.
Also, there may be more of a limit on the number of folks getting approved for a card.
We're on your side with some tips on how to get out of this crunch in one piece.
First and foremost, do not be late on your payments and try to pay in full whenever you can- be careful with your credit- think of it just as your do cash.
Next, be sure to shop around for the cheapest interest rates available.
If you have an outstanding debt, call the lender and make an offer.
One good thing that will be coming out of the credit crunch, you will likely get less credit card offers in the mail.
overseas markets headed south, the Dow tumbled as much as 800 points before cutting its losses in late trading.
CBS’Alexis Christoforous has the latest.
It was the first time in four years that the Dow Jones Industrial Average dropped below the 10-thousand mark.
The sell-off followed big declines in Asian and European markets. The credit crisis is now global, leaving banks around the world starved for cash.
“The speed with which it is happening is just so phenomenal. That is what is scaring people,” says one trader.
At the close, the Dow was down about 370 points but earlier in the day, it felt like panic as the number dropped by 700, then 800 points.
Traders look back at the collapse of Lehman Brothers as a turning point for this market. The investment bank filed for bankruptcy three weeks ago, triggering panic in the financial world. Today the company's top executive was called to Capitol Hill to face angry lawmakers.
“I feel horrible about what has happened to the company and its effects on so many,” says Lehman Brothers CEO Richard Fuld.
CEO Richard Fuld called the bank's failure a tragedy. But company documents show in the final days before going bankrupt, Lehman approved paying millions of dollars to departing executives.
“In other words, even as Mr. Fuld was pleading with Secretary Paulson for a federal rescue, Lehman continued to squander millions on executive compensation,” says Rep. Henry Waxman, of California.
The government's 700-billion dollar bailout package is designed to save other banks from Lehman's fate. No money is changing hands yet. The administration is working out details on how to divide it up. But it has chosen a former investment banker to head the program.
Despite the numbers, experts say do not panic.
Don’t sell anything right now because it is a guaranteed loss.
The best thing to do is wait for things to pick up before making a decision.
If you are a credit card holder, things may be changing as well.
Your credit line may be less and your interest rates could be going up.
Also, there may be more of a limit on the number of folks getting approved for a card.
We're on your side with some tips on how to get out of this crunch in one piece.
First and foremost, do not be late on your payments and try to pay in full whenever you can- be careful with your credit- think of it just as your do cash.
Next, be sure to shop around for the cheapest interest rates available.
If you have an outstanding debt, call the lender and make an offer.
One good thing that will be coming out of the credit crunch, you will likely get less credit card offers in the mail.
