User:LukeShort2/2011 stock market crash

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In August 2011, investors lost trillions due to many different variables causing the stock market to fall. There was a debt crisis in Europe, uninspiring economic news, and a bust to U.S. credit rating which caused a fear of double dip recession. August 4, 2011 was a below average day in the stock market but ended in the worst day since 2009. Investors wanted to find safer ways to invest their money due to the 11 percent stock market fall in two weeks. As the market was falling, the United States and Europe were failing to fix the economic crisis occurring. Investors were moving their money to treasury bonds to increase the security of their investments. Which led to the European Central Bank trying to recover the stock market drop which was unsuccessful. This scared investors and did the opposite of what was wanted. The Central bank intervened by buying bonds from small countries, but not Italy and Spain. Which led to the idea the Central bank would soon be overwhelmed by the huge amount of debt in these two countries. Then Investors were more unnerved due to the European Commission President, Manuel Barroso. Instead of downplaying the market crash he confirmed the fears of the stock market crash due to political paralysis.