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Markets crash, even after debt deal

Markets crash, even after debt deal
Phew! Thank God that that whole “debt ceiling” thing is over and America can go back to being a money-making powerhouse, right? Think again.

Following legislative and executive approval of a last-minute deal to save the US dollar from potentially defaulting, the Dow Jones Industrial Average still managed to plummet on Tuesday. When the markets closed this afternoon, the DJIA showed a drop in 265.87 points, or 2.19 percent.

That plunge puts the Dow below the 12,000 mark all the way at 11,866.62. When was the last time that happened? Way back in 2008.

Hours after President Obama once again addressed the nation to signal what many hoped would be the end of the debt dilemma, the financial markets closed and only echoed the turbulence that has plagued America for recent weeks. Today’s drop marks the eighth consecutive day of decreasing number.

Pfizer dropped by 4.58 percent today; General Electric dropped by 4.23 percent; the S&P 500 went down by 2.56 percent.

From the White House this afternoon, President Barack Obama said that the signing of the debt ceiling raise would be a “first step” towards rebuilding the economy. It looks like the markets, however, didn’t bite Obama’s bait. As a result, the market slump has extended into its second week and it looks like the economy remains in dire straits for the time being.