Shocker: Dow Drops Below 12,000 with Losses

The Dow Jones Industrial Index has fallen again-- for the sixth straight week. The combination of worsening credit, slumping GDP and property growth, and high commodity prices appear to be damaging the wider economy.

Now the Dow has fallen significantly today-- over 1%, below 12,000. This also comes as the index has already fallen by hundreds of points. The S&P and NASDAQ has also fallen over 1%.

In response, oil and gold fell and the dollar appears mixed:
Financial stocks led the way lower. Insurer Travelers fell 2.6% to lead the blue-chip Dow's decliners as the company said it was slowing its share-buyback program after natural disasters cost it about $1 billion over two months. Energy stocks were also weak amid reports that Saudi Arabia would increase oil output, driving crude oil sharply lower, near $99 a barrel.

The stock market is feeling the pain-- and the end of QE2 and other artificial shifts created by the Fed are going to hurt the situation and cause Obama to talk more about stimulus, as advisors suggested yesterday.

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