NPR 2008-10-07

Stock prices plunged 1 again in the United States, taking a lead from overseas markets today. The Dow Jones Industrial Average finished below 10,000 for the first time since October of 2004. NPR's Jim Zarroli has more.

The Dow dropped nearly 8% at one point in the day though it later rebounded 2. It's now fallen 25% this year. The NASDAQ Composite Index is down nearly 30%. The downturn came despite a big financial bailout signed into law by President Bush last week. That bailout was supposed to help stabilize 3 the financial markets. But Ard Hugen of Jefferies & Companies says that hasn't happened yet. "The problems are due to more global and their domestic, and I think that none of those are necessarily fixed 4 with a rescue plan the US put together." He says credit remains 5 tight, and there were big drops in the European and Asian markets. Investors 6 are worried that the US mortgage market downturn has now spread to other countries and that a global recession looms 7. Jim Zarroli, NPR News, New York.

On Wall Street, the Dow Jones Industrial Average closed down 369 points today, a decline of 3.5%, to end the session at 9955. The NASDAQ lost 84 points today. The S&P 500 was down 42 points.

A former Goldman Sachs investment banker has been given the nod to begin spending the $700 billion the government set aside to buy up some of the toxic 8 assets of banks and financial firms. The government announced today that Neel Kashkari who has also served as an advisor 9 to Treasury 10 Secretary Henry Paulson won the government program at least on an interim 11 basis. Kashkari helped to draft the legislation, approving government program to be administered through new office of financial stability. Before his career in finance, the 35-year-old worked for NASA.

Lehman Brothers chief executive Richard Fuld testified today about the demise 12 of his firm before the House Government Reform Committee. NPR's Yuki Noguchi has more.

Richard Fuld open with what seemed like an apology to the country. "I take full responsibility for the decisions that I made and for the actions that I took." But he said media reports made him look resistant 13 to selling his company. In fact, Lehman was caught in a financial tsunami 14 that could have taken down any other financial institution, he said, and he did expect to contain the damage. "Contrary to what you may have read, I never turn down an offer to buy Lehman Brothers." Fuld faced stiff questions about the risk Lehman took with investors' money while collecting tens of millions of dollars in compensation for himself. Yuki Noguchi, NPR News, Washington.

The three judge panel has ruled that two of President Bush's top aides do not have to cooperate with a congressional investigation 15 looking into the firings of nine federal prosecutors 16 in 2006. It was court of appeals' ruling that overturns a district court order that would have required former White House counsel Harriet Miers to testify as well as Josh Bolten to turn over the documents.

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Pakistan today announced the deportation 17 of around 50,000 Afghan refugees from a tribal 18 region that has been home to insurgents 19 and what has been built as a major offensive against al-Qaeda and the Taliban. The government said many of those being expelled have links to militant 20 groups. A local government official announced the arrest of around two dozen Afghans in the region and said they will be deported 21. Officials also said in some instances, homes will be bulldozed to prevent them from returning. Meanwhile in the ongoing 22 string of bombings against government and military targets in Pakistan, a suicide bomber 23 attacked a lawmaker's home in the east part of the country. At least 15 people were killed, 50 others were wounded.

China has canceled or postponed 24 a number of high level military contacts with the US in protest of planned arms sales to Taiwan. NPR's JJ Sutherland has more.

The move comes just days after the Defense 25 Department said it plans to sell a number of advanced weapons to Taiwan. A Defense Department spokesman said it is an apparent politicalization to China's military relationship with the US. The multi-billion-dollar deal includes missiles, helicopters and spare parts for Taiwan's airforce. The Chinese Embassy in Washington released a statement saying the sale of weapons would undermine China's national security and that they would respond with strong indignation. This move seems to be part of that. China views Taiwan as a breakaway province and urged Washington to oppose "Taiwan independence". The Defense Department says the arms sales are necessary for Taiwan's defense. JJ Sutherland, NPR news.

Crude oil futures 26 ended the sessions lower today. The near month contract for benchmark grade crude was down more than $6 a barrel today to settle at $87.81 a barrel on the New York Mercantile Exchange.