Joe Bel Bruno for Associated Press reports that the Dow Jones Industrial dropped 214 points in trading today. The S&P 500 lost 2.20%, while the Nasdaq composite declined 2.30%. The declines sent both the Nasdaq and S&P to 52-week lows.
Credit concerns mounted after Thornburg Mortgage Inc. and Carlyle Group bond fund revealed troubles with investment backed mortgages. The entities failed to make margin calls, which are payments that guarantee much larger debt or investments.
Fourth quarter home foreclosures rose to record levels. Rising defaults have caused lenders to be weary to extend credit, resulting in abnormal credit markets.
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