Further big falls overnight in the US. Asia has been falling the last couple of days. This from CNN:
Wall Street markets dipped sharply Wednesday weighed down by losses in Europe and Asia and recession fears.
The benchmark Dow Jones shed more than 3 percent in early trading before rallying a little, down 231 points at 8,463. The Nasdaq was also down almost 3 percent, more than 40 points, at 1,539.
In an effort to bolster economic confidence U.S. Treasury Secretary Henry Paulson said Wednesday he had seen signs of improvement in the economic situation.
"Both at home and around the world we have already seen signs of improvement. Our system is stronger and more stable than just a few weeks ago," Paulson said as he updated reporters on the progress of the U.S. government's financial rescue package.
But Paulson warned that the economy remained "fragile" and said further market turmoil could be expected as a consequence of the collapse of the U.S. housing market.
Broadening the reach of the Treasury's $700 billion bailout plan, Paulson said non-bank financial institutions that provide consumer credit, such as credit cards and auto loans, would also be eligible for government financing and warned that banks and non-banks could require further capital.
"Although the financial system has stabilized, both banks and non-banks may well need more capital given their troubled asset holdings, projections for continued high rates of foreclosures and stagnant U.S. and world economic conditions," Paulson said.
