Stocks swoon as dollar falls, gold jumps

Associated Press

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NEW YORK -- Stocks tumbled Thursday as investors recoiled at a further decline in the dollar, spikes in gold and oil prices and a warning that a Carlyle Group fund is near collapse. The major indexes each lost more than 1 percent; the Dow Jones industrial average at times fell more than 200 points.

AP

Talk of regulatory changes for the mortgage industry did little to dislodge Wall Street's glum mood. Treasury Secretary Henry Paulson outlined a plan Thursday to provide stronger oversight of mortgage lenders, whose lax standards are blamed for touching off the concerns about souring debt that have led to turmoil in the credit markets.

Investors appeared doubtful that regulatory changes at this point would give the economy the immediate boost it needs. Consumers are paring back their discretionary spending by more than many anticipated - a government report Thursday said retail sales fell in February after the market predicted an increase.

"Things just aren't good for the consumer, and thus, they're not good for Wall Street," said Kim Caughey, equity research analyst at Fort Pitt Capital Group.

Meanwhile, no one is positive which companies and which investors are going to end up losing money if more funds collapse. "It is going to be difficult to see who has the Old Maid card. And time will tell," Caughey said.

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