Wall Street's meltdown is fast becoming Sacramento's problem, too.
The three-headed monster gripping the financial markets Monday will put more economic pressure on the Sacramento area. Credit markets will tighten, which could hurt the fragile recovery in the housing market. Businesses will find it harder to expand. Pension plans might suffer. A lot of people will feel poorer and more afraid.
All of which is bad news in a region where unemployment – at 7.3 percent – is the highest in 12 years.
Lehman Brothers' bankruptcy, plus the rescue of Merrill Lynch and the iffy fate of insurer American International Group, sent the Dow Jones tumbling 504 points Monday. It was one of Wall Street's worst days ever, and made for a bad day on Main Street, too.
The demise of the nation's fourth-largest brokerage firm did little to boost confidence in the economy. The fall of the Dow, following weeks of market instability, took another chunk out of practically everyone's nest egg.
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