; Policymakers Seen Unable to Respond

Buffalo NewsAugust 05, 2011

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Summary


Gripped by fear of a new recession, the stock market suffered its worst day Thursday since the fall 2008 financial crisis. The Dow Jones Industrial Average fell 512 points, its ninth-steepest decline.

The sustained stock market drop is stoking fears that the economy is headed into a prolonged downturn at a time when policymakers are particularly ill equipped to fight it.

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; Policymakers Seen Unable to Respond

The Dow closed Thursday at 11,383. The market has declined by more than 10 percent in the past two weeks. If those losses continued, they would severely undermine the efforts of government and individuals to dig out of the deep debt that many analysts say is at the root of the nation's eco...

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