Oct 9, 2008 10:38 pm US/Central
Dow Drops Below 9K, Chicagoans React
CHICAGO (CBS) ―
The stock market continues to break all the wrong records leaving Chicagoans with stomach jitters over what's next. How low can it go? Despite the $700 billion rescue plan and this week's interest rate cut, Wall Street continues its losing streak.
On Thursday, the Dow slid below 9,000. That's the third largest point drop in history and the worst finish in five years. CBS 2's Jay Levine reports on how this rocky ride is affecting Chicagoans.
It's affecting people already retired and those close to it who don't have time to wait for stocks to rebound. But for most others, it's simply the fear factor.
A year ago today, the closing bell was a time to celebrate a new record. Today it was anything but. A final hour freefall ended the sixth straight session of triple digit losses which had Chicagoans nervous.
"I'm just going to cut back basically on everything," said Glenn Dickerson, Chicagoan.
A year ago today, the Dow closed at over 14,000, it's now under 8,600. And Chicagoans, while worried about retirement accounts, have more immediate concerns.
"When you see the Dow pushed off a cliff every day, it certainly makes you nervous, you start worrying about your own job and the people closest to you," said Kyle Lloyd, Chicagoan.
"The real economy is not looking that bad yet and so the average person should not panic, they should just be aware that things could get worse," said Deborah Lucas, Kellogg School of Management.
"I'm spending less and trying to save as much as possible," said Tianna Strong, Chicagoan.
That is a good plan, according to the experts CBS 2 spoke with Thursday.
"People should make sure they have cash in their hand, they have a Plan B and they have time to absorb the eventual loss of a job, so they are not under pressure immediately when something wrong happens to their position," said Adolfo Laurenti, Mesirow Financial.
The hope is that emergency measures will prevent that. But so far, nothing's worked to restore investors' confidence in the economy. President Bush will try again tomorrow morning, in an address from the Rose Garden.
Chicago-based Northern Trust Corp is partnering up with the parent of the New York Stock Exchange in a bid to run the government's rescue effort. The two entities submitted a joint proposal today. Northern Trust has about $4 trillion in assets.
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