Business

Wall Street Worries

Friday, May 07, 2010

The Dow opened down three-percent Thursday, in part because people fears Greece's financial crisis could spread through Europe and ultimately to the U.S. markets. But experts say a one-day drop is no indication that the market is on a downward spiral.

A sense of panic swept through Wall Street Thursday after the Dow Jones Industrial Average dropped nearly a thousand points in less than an hour.

"A lot of concerned clients, that's for sure. Lots of phone calls here wondering what's going on and why."

Brian Ullman is an attorney and financial advisor for LPL Financial in Northwest Fresno. He says investors were already on edge because of Greece's ongoing debt crisis. Protesters there are outraged over budget cuts and tax hikes.

Ultimately though, the largest one-day point decline in the Dow's history is the result of human error. A trader looking to sell 16-million dollars in shares accidentally punched in 16-billion.

"It doesn't mean that the market is going back in that direction. It just means there was a lot of volatility, lots of trading going on," said Brian Ullmann.

While Ullmann is confident the U.S. stock market will bounce back, others fear Greece's debt troubles will linger and could be a sign of what's to come here in the united states where the national debt continues to balloon.

"I do in the future if it continues to go the way it's going. My business is down 2-thirds in the last three years and that is no fault of my own -- that is what the economy is doing," said Steve Wayte with the Central Valley Tea Party.

Greece and the Dow drop were on the minds of many at the groups' action meeting Thursday. Wayte says peaceful protesters in Greece and here in the U.S. have reason to be suspicious of big government and big banks.

But others think this latest market drop is nothing more than a small setback.

"The stock surge that you saw come back up today. I mean they're calling it a fat finger slip, but I have a feeling the fat finger is the fat finger from the fat banker buying back in to prop it up," said Wayte.

"Other than some rattled nerves, I don't think there's any real long lasting damage," said Ullmann.

The Dow closed three-percent down, which was the level it was at before today's hour long plunge. It will be days or even months before we know how much of an impact Greece's financial problems will have on the U.S. economy.

(Copyright ©2014 by The Associated Press. All Rights Reserved.)

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wall street, economy, business, shannon handy
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