Dow plunges nearly 430 to fall below 8,000 mark

Wall Street hit levels not seen since 2002 -03, with the Dow Jones industrial average falling below the 8,000 mark, as the fate of Detroit's Big Three automakers and the economy disheartened investors

The heads of General Motors Ford and Chrysler are asking for a massive infusion of cash to prevent millions of layoffs and stave off bankruptcy.

Investors were discouraged by the Fed's sharply lowered projection for economic activity this year and next. Economic worries caused across-the-board selling, with financial stocks particularly hard hit.

The Dow finished down nearly 430 points at the 7,990 level.

General Motors Corp. tumbled as much as 18 percent to its lowest price since 1942, while Ford Motor Co. lost 24 percent. Citigroup Inc. slid 17 percent to $6.90, a 13-year low, on a plan to buy $17.4 billion of assets from structured investment vehicles it advises.

JPMorgan, the biggest U.S. bank by market value, lost 2.31, or 7.2 percent, to $29.83, below its lowest closing price since 2003.

Citigroup, which was surpassed by US Bancorp today as the nation's fourth-largest bank by market value, retreated to its lowest price since 1995.

My View:

According to charts, Dow has major support @ 7600 levels when Dot com bubble broke out in 2001-02. But looking at present condition I doubt whether Dow or any other indexes hold their any previous support levels.

As our PM and FM are saying on daily basis market is changing. Even it is becoming difficult for chartists also to predict who otherwise will be very successful in predicting. In this kind markets clearly lost its RADAR which is leading to erratic movements.

As I posted in previous posts, snowballing effect is leading to capitulation!!!

I dont know how governments are going to deal with this kind of condition. But what I feel is THE KEYNESIAN CONCEPT & MILTON's concept (HELICOPTER MONEY where in governments directly give money to firms by avoiding FINANCIAL INTERMEDIARIES) is the best possible solution to this kind of the solution.

But I dont know!!!