The Dow's decline steepens dramatically from a 90-point drop at the outset, when only half of the index's stocks were open for trading, to a nearly 300-point decline when in full swing—and it'll get worse before the day is over. The S&P 500 falls 2.5 percent and the tech-centric Nasdaq loses some 2 percent.
What You Were Reading:
The damage reports were dire.
"You're waking up to a materially smaller net worth than you had Friday afternoon, there's going to be margin clerk panic liquidation in the first hour or two of the stock markets here in the U.S.," says Dennis Gartman, founder of the Gartman Letter, tells CNBC. But he believes the Lehman collapse is unlikely to bring any more investment bank bankruptcies.
Ten giant banks agree to set up a collateralized borrowing facility, and commit to fund $7 billion each. The banks are Bank of America, Barclays , Citibank , Credit Suisse , Deutsche Bank , Goldman Sachs , JP Morgan Chase , Merrill Lynch, Morgan Stanley , and UBS .
Oppenheimer's Meredith Whitney predicts that the worst is likely to come: "What this does is to exacerbate the credit crunch because it pulls so much liquidity out of an already strapped market,” she tells CNBC.