Dow Tanks - Down 310 Points In One Day

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Not exactly a shining moment for the Dow Jones Industrial Average, which dumped 310 points today. The biggest reason is continued concern about the mortgage and commercial lending segments. With foreclosures on an upswing, credit quality is declining fast.

nvestors who had been able for months to largely shrug off discomfort about subprime mortgage problems and a more difficult environment for corporate borrowing finally decided it was time to sell after the Commerce Department issued another disappointing home sales report.

Feeding the plunge were concerns that higher corporate borrowing costs will curb the rapid pace of takeovers that had driven stocks higher this year. Investors also feared the sluggish environment for home sales and continued defaults in subprime loans would spur debt defaults and weigh on corporate earnings.

Money went from the stock market and poured into the bond market, for investors looking for safe alternatives to daily trading of the industrials.

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