Financial crisis slams stock market:
The financial crisis of 2007–2009, initially referred to in the media as a “credit crunch” or “credit crisis”, began in July 2007[1][2] when a loss of confidence by investors in the value of securitized mortgages in the United States resulted in a liquidity crisis that prompted a substantial injection of capital into financial markets by the United States Federal Reserve, Bank of England and the European Central Bank.[3][4] The TED spread, an indicator of perceived credit risk in the general economy, spiked up in July 2007, remained volatile for a year, then spiked even higher in September 2008,[5] reaching a record 4.65% on October 10, 2008. In September 2008, the crisis deepened, as stock markets world-wide crashed and entered a period of high volatility, and a considerable number of banks, mortgage lenders and insurance companies failed in the following weeks.
Stocks lowest since 9/11
The Dow industrials dropped 504.48 points to close at 10,917.51, the first time since July it’s finished under 11,000. It was the sixth-largest point drop ever and the worst since Sept. 17, 2001, when the average fell 684.81 points on the first day of trading after the terror attacks.
Broader stock indicators also fell. The Standard & Poor’s 500 index lost more than 4 1/2 percent, and the Nasdaq composite index lost more than 3 1/2 percent.
How to Invest in the Stock Market During this Financial Crisis?
Be Cautious, Do Your Research, Buy slowly.
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