Confidence in the strength of the global economy is wavering Friday amidst new signs of an economic slowdown. Now investors are heading for the exits.
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In the second biggest stock market drop this year, the Dow Jones industrial average lost 251 points Thursday after new reports from the United States and China showing a big slowdown in manufacturing.
Not only is manufacturing slowing down, unemployment figures are at their highest level in nine months, and sales of previously owned homes are falling.
The dismal development comes only days after the Federal Reserve slashed its estimates for U.S. economic growth, promising action by the Feds if the economy slows any further.
"We're prepared to take further steps, if necessary, to promote sustainable growth and recovery in the labor market," Federal Reserve Chairman Ben Bernanke said.
World markets reflected the news Friday, with Asian markets showing a steep decline one day after the Dow's 2 percent drop.
SOURCE: CBN News
Caitlin Burke and Charlene Israel