Global Meltdown as Markets Crash

There are fears of a new recession:

Gripped by  fear of a new recession, Wall Street suffered its worst day Thursday  since the financial crisis in the fall of 2008. The firestorm of selling  that erased more than 500 points off the Dow Jones industrial average  then spread overseas.

The sell-off wiped out the Dow’s remaining  gains for 2011. It put the Dow and broader stock indexes into what  investors call a correction — down 10 percent from their highs in the  spring.

Across the financial markets, the  day was reminiscent of the wild swings that defined the financial crisis  in September and October three years ago. Gold prices briefly hit a  record high. Oil fell even more than stocks — 6 percent, or $5.30 a  barrel. And frightened investors were so desperate to get into some  government bonds that they were willing accept almost no return on their  money.

It was the most alarming day yet in the almost  uninterrupted selling that has swept Wall Street for two weeks. The Dow  has lost more than 1,300 points, or 10.5 percent. By one broad measure  kept by Dow Jones, almost $1.9 trillion in market value has disappeared.

For  the day, the Dow closed down 512.76 points, at 11,383.68. It was the  steepest point decline since Dec. 1, 2008…

More here.

The Telegraph is covering the news live here.

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