CBNNews.com - WASHINGTON - Wall Street took another dive Monday, as the Dow Jones fell as much as a record 800 points at one point, amid a growing credit crisis that is rippling across the world./p>
Stocks recoved some in last minute trading, but still ended under 10,000 - st1 :state w:st="on">the first time it has dropped below that mark in four years. The drop comes as global markets continue to strugglest1 :state w:st="on">, despite the government's bailout effort last week. /p>
What to think about the bailout bill and the continuing economic slide? CBN News Financial Editor Drew Parkhill tells more, following this report.
st1 :state w:st="on">President Bush today said that it will take time for the economic rescue plan, passed by Congress last week, to work./p>
"I believe that in the long run, this economy is going to be just fine," Bush said, acknowledging the difficulty many are currently facing.
Too Little, Too Late? /p>
Buy so far, $700-billion bailout backed by the U.S. government has not been enough to buy back the confidence of market investors. From Asia to Europe, stocks spiraled. Over the weekend, European governments also took steps to stave off the growing global crisis./p>
By Monday morning, Investors began to realize that the bailout deal will not work quickly to free up credit flow. Many banks are still struggling to access cash./p>
London's benchmark FTSE fell more than 4.5 percent in early trading. By mid-afternoon in mainland China, the benchmark Shanghai Composite tumbled down 5 percent. And japans' Nikkei index sank to its lowest in more than four years.
Concerns of a global economic slowdown are deepening, pushing oil prices under $90 a barrel and causing the euro to fall to a 13-month low against the dollar.
The bad financial news has European leaders so worried, that they're holding a summit to figure a way to keep their economies from failing.
"No sound, solvent bank should be allowed to fail through lack of liquidity. That's why we have taken action in Britain yesterday to extend the liquidity that is available to the banking system, and that's why the European Central Bank has done likewise," British Prime Minister Gordon Brown said.
Congress's passage of the economic rescue plan has yet to calm fears.
"We've got to get credit flowing of course so that people feel comfortable about conducting business and so there's a lot of work to be done," President Bush said.
Sen. Richard Durbin said, "We've learned our lesson. Come the next Congress, we're going to put in place oversight to protect taxpayers and savers."
Banks - strapped for cash - are not lending like they used to and in some cases, even people with good credit are having a tough time getting loans.
Even after the government begins buying up some of those bad mortgage loans to help ease the credit crunch, it may take a while before it's anywhere close to being business as usual.
Economic Crisis Won't Be Fixed Overnight
"These problems were made over a long time, they were made with failure to think about risk, they were made with a strategy of deregulation, and they will take us time to work through," Former Treasury Secretary Larry Summers.
Analysts say the rescue plan won't solve America's financial problems. Instead, they say it's a first step toward getting the financial system back on solid ground.