The Dow Jones industrial average lost 200 points, dipping below 11,000 for the first time in nearly a month. Stocks are tumbling as worries mount about inflation in Asia and a possible bailout for Ireland.
Asian markets set off a global sell-off Tuesday as South Korea raised a key interest rate. And there is speculation China will do the same in the coming days, which would dampen its demand for basic materials and cool growth.
In Europe, finance ministers are meeting to decide whether Ireland needs a bailout similar to the one given to Greece. The European Union’s monetary chief says Ireland’s debt crisis is all about its troubled banks – and that the shared euro currency is not in danger. Ireland is paying billions to fix banks brought low by the end of its real estate boom, ballooning its budget deficit and frightening its creditors.
WWJ and Fox-2 Business Editor Murray Feldman says the dive on Wall Street as a result of Ireland’s problems is just the nature of a global economy. Says Feldman, “Everybody is doing business with everybody else, which is good for business when times are good but then when there’s uncertainty in any one area, it hits everything.”
(Copyright, 2010. WWJ Newsradio 950, All Rights Reserved. The Associated Press contributed to this report.)