Financial markets were roiled again on Friday amid growing signs that the subprime mortgage problem may be far more widespread than anyone thought.
Though stocks ended the day little changed, most experts think investors should be prepared for more nervous days ahead.
"I don't know that anybody knows where the bottom of this thing is," said Larry Levin, president of SecretsofTraders.com. "The only things that are moving the market right now are these subprime and credit headlines and something that the Fed might possibly do."
Among the latest developments:
--The Federal Reserve added $38 billion to the financial system on Friday as the scramble for cash pushed up short-term lending rates. Although the first two injections seemed to calm the markets, the third renewed jitters about the credit crunch.
--U.S. regulators have begun going over the books of some top Wall Street brokers and investment banks for subprime-mortgage losses, the Wall Street Journal reported.
--Big mortgage lenders got pummeled as investors received fresh reminders that a shortage of liquidity might crimp profits.
--The U.S. economy could slow further because of tighter credit, broad deterioration in the housing market and skittish consumer spending, a closely watched forecast by U.S. economists says.
Fed Adds Liquidity